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midterm 2

True or false. A terabyte is larger than a petabyte in terms of computer storage.

False; A terabyte is smaller than a petabyte in terms of computer storage.

True or false. Data mining tools process data using statistical techniques.

True.

True or false. Reporting tools are programs that read data from a variety of sources, process that data, format it into structured reports, and deliver those reports to the users who need them.

True.

True or false. Data compression involves searching for patterns and relationships among data.

False; Data mining involves searching for patterns and relationships among data.

True or false. In most cases, data-mining tools are used to make assessments.

False; In most cases, data mining tools are used to make predictions.

True or false. Reporting tools tend to use simpler operations while data-mining tends to use more sophisticated statistical techniques.

True.

True or false. Knowledge-management tools differ from reporting and data-mining tools because the source of the data is recorded facts and figures.

False; Knowledge management tools differ from reporting and data-mining tools because the source of the data is human knowledge.

True or false. Reporting tools produce information from data using five basic operations: sorting, grouping, calculating, filtering, and formatting.

True.

True or false. RFM analysis, a technique readily implemented using reporting tools, us used to analyze and rank customers according to their purchase patterns.

True.

True or false. RFM analysis considers how recently (R) a customer ordered, how frequently (F) they ordered, and how much margin (M) the company made on the orders.

False; RFM analysis considers how recently (R) a customer ordered, how frequently (F) they ordered, and how much money they've spent (M on the orders.

True or false. An OLAP cube and an OLAP report are the same thing.

True.

True or false. OLAP stands for Organizational Lead Analysis Program and is used extensively to generate reports for marketing and sales.

False; OLAP stands for Online Analytical Processing and is used extensivel to generate reports for marketing and sales.

True or false. OLAP provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data.

True.

True or false. In an OLAP report, a measure is the data item of interest.

True.

True or false. Total sales, average sales, and average cost are examples of dimensions used in an OLAP report.

False; Total sales, average sales, and average cost are examples of measures used in an OLAP report.

True or false. A drawback associated with OLAP reports is their inability to let users drill down into the data.

False;

True or false. Normally, for performance and security reasons the OLAP server and DBMS run on separate servers.

True.

True or false. Data mining is the application of statistical techniques to find patterns and relationships among data for classification and prediction.

True.

True or false. Knowledge discovery in database (KDD) is used as a synonym for data mining.

True.

True or false. With unsupervised data mining, analysts do not create a model or hypothesis before running the analysis.

True.

True or false. Cluster analysis is used to identify groups of entities that have similar characteristics.

True.

True or false. In supervised data mining, a model is developed after the analysis.

In supervised data mining, a model is developed prior to the analysis.

True or false. Neural networks are a popular unsupervised data-mining technique.

Neural networks are a popular supervised data-mining technique.

True or false. A market-basket analysis is a data-mining technique used for determining sales patterns.

True.

True or false. In marketing transactions, the fact that customers who buy the product X also buy product Y creates a cross-selling opportunity.

True.

True or false. In market basket terminology, a conditional probability estimate is called a lift.

False; In market basket terminology, a conditional probability estimate is called the confidence.

True or false. Decision-tree analyses are an unsupervised data-mining technique because data miners develop a model prior to the analysis.

False; Decision-tree analyses are an unsupervised data-mining technique because data miners develop a model after the analysis.

True or false. Market-basket analysis is based on an "If....then..." analysis.

False; Decision-tree analysis is based on an "If.....then..." analysis.

True or false. CurrentLTV is the current ratio of outstanding balance of a loan to the value of the loan's collateral.

True.

True or false. Operational data is designed to support fast transaction processing and might need to be reformatted to be useful for BI applications.

True.

True or false. Data marts are also referred to as data houses.

False

True or false. A value 999-999-9999 for a U.S. phone number is an example of dirty data.

True.

True or false. Problematic data are termed dirty data.

True.

True or false. Wrong granularity implies that data is either too fine or too coarse.

True.

True or false. A file of order totals cannot be used for a market-basket analysis. This is a problem associated with the data being too fine.

False; A file of order totals cannot be used for a market-basket analysis. This is a problem associated with the data being too coarse.

True or false. It is possible to capture the customer's clicking behavior using a clickstream data.

True.

True or false. It is better to have data that is too coarse than data that is too fine.

False; It is better to have data that is too fine than data that is too coarse.

True or false. A data warehouse, is a data collection, smaller than the data mart, that addresses a particular component or functional area of the business.

False; A data mart, is a data collection, smaller than the data warehouse, that addresses a particular component or functional area of the business.

True or false. Knowledge management enables employees to leverage organizational knowledge to work more efficiently.

False; Knowledge management enables employees to leverage organizational knowledge to work smarter.

True or false. Knowledge management applications are concerned with minimizing content use.

False; Knowledge management applications are concerned with maximizing content use.

True or false. Indexing is the single most important content function in KM applications.

True.

True or false. Real Simple Syndication (RSS) is a special case of a BI application server that serves only reports.

False;

True or false. Knowledge management applications are concerned with minimizing content use.

True.

True or false. Expert systems attempt to capture human expertise and put it into a format that can be used by non-experts.

True.

True or false. Expert systems are rule-based systems that use "If....then" rules similar to those created by decision-tree analysis.

True.

True or false. Expert systems are difficult to develop but are easy to maintain.

False; Expert systems are difficult to develop and difficult to maintain.

True or false. In a generic business intelligence system, applications results are processed by a BI tool to produce a data source.

False; In a generic business intelligence system, a data source is processed by a BI tool to produce application results.

True or false. Portal servers are like Web servers except that they do not have a customizable user interface.

False; Portal servers are like Web servers except that they do have a customizable user interface.

True or false. Report servers are messages transmitted via e-mail or phone that notify a user that a particular condition has occurred.

False; Alerts are messages transmitted via e-mail or phone that notify a user that a particular condition has occurred.

True or false. The credit card reform law passed by U.S. Congress in May 2009 requires the Federal Trade Commission (FTC) to investigate data mining by credit card employees.

True.

__________ is defined as information containing patterns, relationships, and trends.

Business intelligence

1 petabyte is made up of __________ bytes.

10^15

Which of the following can store the maximum amount of data?

1 exabyte (EB)

How big is 1 gigabyte?

10^9 bytes

______ tools are programs that read data from a variety of sources, process that data, format it into structured reports, and deliver those reports to the users who need them.

Reporting

Which of the following is an example of a question that a reporting tool will help address?

How does the current situation compare to the past?

What are reporting tools primarily used for?

Assessment

In most cases, data-mining tools are used to make __________.

Predictions

Which of the following is an example of a question that data-mining will help address?

Will a given customer default on a loan?

Among the following, which is the best way to distinguish between reporting tools and data-mining tools?

Complexity of techniques used

Knowledge management tools differ from reporting and data-mining tools because the source of their data is _________.

Human knowledge

Which of the following is a description of a business intelligence (BI) application?

A. It is an information system that employs BI tools to deliver information.
B. It implements the logic of a particular procedure or process.
C. It stores employee knowledge and makes it available to those who need it.
D. It is the use of a tool on a particular type of data for a particular type of purpose.

D. It is the use of a tool on a particular type of data for a particular purpose.

Which of the following is a basic operation used by reporting tools to produce information from data?

Calculating

Which basic operation structures a report so that it is easier to understand?

Formatting

__________ analysis is a way of analyzing and ranking customers according to their purchasing patterns.

RFM

An RFM score of ________ most likely means that a customer has taken its business elsewhere and is probably not worth spending too many marketing resources on.

555

RFM analysis ranks customers by considering the recency, frequency, and __________ of their orders.

dollar amount

Ajax is one of the customers of a well-known linen manufacturing company. Ajax has not ordered linen in some time, but when it did order in the past, it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax's RFM score is most likely ___________.

511

A sales team should attemp to up-sell more expensive products to a customer who has an RFM score of __________.

113

How should a sales team respond to a customer who has an RFM score of 545?

The sales team should let go of this customer; the loss will be minimal.

Rubber trees is a well known manufacturing company. Bloominghams, one of the customers of Rubber trees holds an RFM score of 111. Which of the following characteristics relates Bloominghams with its RFM score?

Bloominghams has ordered recently and orders frequently, and it orders the most expensive goods.

OLAP stands for ________.

Online Analytical Processing

The viewer of an OLAP report can change its format. Which term implies this capability?

Dimension

An OLAP report has measures and dimensions. Which of the following is an example of a dimension?

Sales region

Which of the following describes a dimension in an OLAP report?

It is a characteristic of a measure

An OLAP report has measures and dimensions. Which of the following is an example of a measure?

Average cost

Because they are online, OLAP reports are ____________ reports.

Dynamic

An _______ and an OLAP report are the same thing.

OLAP cube

Which of the following observations is true?

A. RFM reports have measures and dimensions.
B. RFM is more generic than OLAP
C. OLAP reports are more dynamic then RFM reports.
D. RFM reports can drill down into the data.

C. OLAP reports are more dynamic than RFM reports.

_________ reports allow users to drill down into the data and divide it into more detail.

OLAP

________ is the application of statistical techniques to find patterns and relationships among data for classification and prediction.

Data mining

Which term is used as a synonym for data mining?

Knowledge discovery in databases

Which of the following is true of unsupervised data mining?

A. Analysts use tools such as regression analysis.
B. Analysts apply statistical techniques to data to estimate parameters of a model.
C. Analysts fit data to suggested hypotheses.
D. Analysts do not create a model or hypothesis before running the analysis.

D. Analysts do not create a model or hypothesis before running the analysis.

In ________, statistical techniques identify groups of entities that have similar characteristics.

Cluster analysis

Which of the following is an example of an unsupervised data-mining technique?

A. Regression analysis
B. Data streaming
C. Cluster analysis
D. Neural networks

C. Cluster analysis

Which of the following is an example of an supervised data-mining technique?

A. Regression analysis
B. A decision tree
C. Market-basket analysis
D. Neural networks

A. Regression analysis

Which of the following is used to show the products that customers tend to buy together?

Market-basket analysis

In marketing transactions, the fact that customers who buy product X also buy from product Y creates a(n) __________ opportunity. That is, "If they're buying X, sell them Y," or "If they're buying Y, sell them X."

Cross-selling

In market-basket terminology, _______ is the term that describes the probability that two items will be purchased together.

Support

In market-basket terminology, the ratio of confidence to the base probability of buying an item is the ________.

Lift

Which of the following is a hierarchal arrangement of criteria that predict a classification or a value?

A decision-tree

Because of problems with operational data, many organizations choose to extract operational data into a(n) ___________.

Data warehouse

A data warehouse contains a special database that stores the __________, which records the source, format, assumptions and constraints, and other facts about the data.

Metadata

Problematic operational data are termed _________.

Dirty data

Which of the following statements is true about operational data?

A. Problematic operational data are termed rough data.
B. If the data granularity is too fine, there is no way to separate the data into constituent parts.
C.It is always better to have data with too coarse granularity than data with too fine a granularity.
D. Purchased operational data often contains missing elements.

D. Purchased operational data often contains missing elements.

Because of a phenomenon called the _________, the more attributes there are, the easier it is to build a model that fits the sample data but that is worthless as a predictor.

Curse of dimensionality

A ________ takes data from data manufacturers, cleans and processes the data, and then stores it.

Data warehouse

Which of the following statements of data mart is true?

A. It addresses a particular component of a functional area of a business.
B. Its users possess the data management expertise that data warehouse employees have.
C. It is larger than the data warehouse.
D. It is like a distributor supply chain.

A. It addresses a particular component or functional area of business.

A ________ is a data collection, smaller than the datawarehouse, that addresses a particular component or functional area of the business.

Data mart

_________ is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need it.

Knowledge management

Which of the following is a major category of knowledge assets?

Employees

__________ is the single most important content function in knowledge management applications.

Indexing

The world's best-known indexing engine is operated by __________.

Google

Which of the following is a standard for subscribing to content sources?

Real Simple Syndication

With a(n) __________ you can subscribe to content sources and be notified when they have been changed.

RSS reader

__________ attempt to capture human expertise and put it into a format that can be used by nonexperts.

Expert systems

Which of the following observations concerning expert systems is true?

A. The "If....then" rules used in these systems are created by mining data.
B. They are easy to maintain
C. They are difficult and expensive to develop
D. They have lived up to the high expectations set by their name.

C. They are difficult and expensive to develop

Portal servers are like Web servers except that they __________.

Have a customizable user interface.

An alert sent to you is an example of ________ technology.

push

A(n) __________ notifies the user of an exceptional event, such as a dramatic fall is a stock price.

Exception alert

How are BI tools categorized?

We can categorize BI tools in one of three ways: as reporting tools, as data mining tools, and as knowledge management tools.

What is an RFM analysis?

RFM analysis is a technique readily implemented using reporting tools and is used to analyze and rank customers according to their purchase patterns.

What is OLAP? What are some of its features?

Online analytical processing is a second type of reporting tool and is more generic than RFM. An OLAP provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data.

Differentiate between unsupervised and supervised data-mining.

With supervised data mining, data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model. With unsupervised data mining, analysts do not create a model or hypothesis before running the analysis.

What is the objective of performing a market-basket analysis?

The objective of market-basket analysis is to determine sales patterns.

What are the problems with using operational data for data-mining applications? How do organizations overcome these issues?

The problems associated with using operational data for data-mining applications are: Dirty data, missing values, inconsistent data, data not integrated, wrong granularity, and too much data. The curse of dimesionality is a way they overcome some of these issues.

What is knowledge management? What are its primary benefits?

Knowledge management is the process of creating value from intellectual capital and sharing the knowledge with employees, managers, suppliers, customers and others who need it. KM applications enable employees and others to leverage organizational knowledge to work smarter.

What are some of the technologies that are used for sharing content?

Indexing, RSS, RSS reader, RSS feed.

What are the expert systems? What are their primary disadvantages?

Expert systems attempt to capture human expertise and put it into a format that can be used by nonexperts. Expert systems are rule based systems that use If...then rules similar to those created by decision tree analysis. Expert systems can have hundred of thousands of rules.

Describe the management functions of a business intelligent server.

The two management functions of a BI server are management and delivery. The management function maintains metadata about the authorized allocation of BI results to users. BI servers use metadata to determine what to send to users and it can be sent on a computer, PDAs, phones, applications such as Microsoft Office and as an SOA service.

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