Business Driven Technology 4th Edition by Baltzan Test bank

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Business Driven Technology 4th Edition by Baltzan Test bank

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Chapter 08
Accessing Organizational Information-Data Warehouse

Multiple Choice Questions

1. A data warehouse is a _________ collection of information-gathered from many different ___________ databases-that supports business analysis activities and decision-making tasks.
A. Physical, transactional
B. Physical, operational
C. Logical, transactional
D. Logical, operational

2. All of the following are reasons why operational systems are not appropriate for business analysis, except:
A. Does not include information from other operational applications
B. Operational systems are integrated
C. Operational information is mainly current
D. Operational information frequently has quality issues

3. What do data warehouses support?
A. OLAP
B. Analytical processing
C. OLTP
D. OLAP and analytical processing

4. Which of the following describes ETL?
A. A process that extracts information from internal and external databases
B. A process that transforms information using a common set of enterprise definitions
C. A process that loads information into a data warehouse
D. All of the above

5. What is data mining?
A. The common term for the representation of multidimensional information
B. A particular attribute of information
C. Uses a variety of techniques to find patterns and relationships in large volumes of information and infer rules from them that predict future behavior and guide decision making
D. Process of analyzing data to extract information not offered by the raw data alone

6. What does the Data Warehousing Institute estimate that low-quality information costs U.S. businesses annually?
A. $500 million
B. $60 billion
C. $600 billion
D. It is impossible to determine

7. When does information cleansing occur in the data warehouse?
A. During the ETL process
B. On the information, once it is in the data warehouse
C. During the ETL process and once it is in the data warehouse
D. During the ETL process and before it is in the data warehouse

8. Which of the following statements is true regarding customer information?
A. Customer information can exist in several operational systems
B. Customer information in each operational system could change
C. Customer information in each operational system can be different
D. All of the above

9. Which of the following occurs during data cleansing?
A. Clean missing records
B. Clean redundant records
C. Clean inaccurate data
D. All of the above

10. Which of the following statements is true?
A. The more complete an organization wants to get its information, the less it costs
B. The more accurate an organization wants to get its information, the less it costs
C. The less accurate an organization wants to get its information, the more it costs
D. The more complete and accurate an organization wants to get its information, the more it costs

11. What is information that people use to support their decision-making efforts?
A. Information cleansing and scrubbing
B. Data-mining tools
C. Data mining
D. Business intelligence

12. Which of the following does not draw a parallel between the challenges in business and the challenges of war?
A. Collecting information
B. Discerning patterns and meaning in the information
C. Accurate and complete information
D. Responding to the resultant information

13. Which of the following is not one of the principal BI enablers?
A. Technology
B. Corporate processes
C. People
D. Corporate culture

14. Why is Ben & Jerrys using business intelligence?
A. To improve quality
B. To create new flavors of ice cream
C. To improve financials
D. To manage distribution

15. Why is Noodles & Company using business intelligence?
A. To improve financial analysis
B. To improve corporate processes
C. To track store quality
D. To change the corporate culture

16. Why would a business use a data warehouse that offers strategic level, external, integrated, and historical information?
A. Identify trends
B. Make projections
C. Decide key business issues
D. All of the above

17. What is the primary purpose of a data warehouse?
A. To aggregate information throughout an organization into multiple repositories in such a way that employees can make decisions and undertake business analysis activities.
B. To disaggregate information throughout an organization into multiple repositories in such a way that employees can make decisions and undertake business analysis activities.
C. To aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.
D. To disaggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.

18. Lands End created an organization wide data warehouse so all its employees could access organizational information. Lands End soon found out that there could be too much of a good thing. Many of its employees would not use the data warehouse because it was simply too big, too complicated, and had too much irrelevant information. Lands End knew there was valuable information in its data warehouse, and it had to find a way for its employees to easily access the information. What was Lands End solution?
A. Build a better, more efficient data warehouse
B. Build a better, more efficient transactional database
C. Build a data mart
D. Build a data-driven website

19. A relational database contains information in a series of two-dimensional tables. How is data contained in a data warehouse and data mart?
A. Information is multidimensional, meaning it contains a single layer data in a table format.
B. Information is two-dimensional, meaning it contains a single layer data in a table format.
C. Information is two-dimensional, meaning it contains layers of columns and rows.
D. Information is multidimensional, meaning it contains layers of columns and rows.

20. What is a dimension?
A. A particular attribute of information.
B. A particular entity of information.
C. A particular relational database.
D. A particular single repository.

21. A dimension is a particular attribute of information. Each layer in a data warehouse or data mart represents information according to an additional dimension. What is the common term for the representation of multidimensional information?
A. Table
B. Block
C. Cube
D. All of the above

22. Achieving perfect information is almost impossible. The more complete and accurate an organization wants its information to be, the more it costs. Which two variables are used to determine the trade-off for perfect information?
A. Accuracy versus completeness
B. Accessibility versus completeness
C. Accuracy versus complexity
D. Accessibility versus complexity

23. Which of the following are the principle BI enablers?
A. Technology, processes, and customer culture
B. Technology, people, and customer culture
C. Technology, processes, and corporate culture
D. Technology, people, and corporate culture

True / False Questions

24. The primary purpose of a data warehouse is to perform transactional processes.
True False

25. Extraction, transformation, and loading is a process that extracts information from internal databases, transforms the information using a common set of enterprise definitions, and loads the information into an external database.
True False

26. A dimension is a particular attribute of information.
True False

27. The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $60 billion annually.
True False

28. The data warehouse is a location for all of a businesss information.
True False

Fill in the Blank Questions

29. A data warehouse is a ___________ collection of information gathered from many different operational database that supports business analysis activities and decision-making tasks.
________________________________________

30. A data __________ contains a subset of data warehouse information.
________________________________________

31. A(n) __________ is a particular attribute of information.
________________________________________

32. A(n) ___________ is the common term for the representation of multidimensional information.
________________________________________

33. Data information in a data warehouse contains layers of columns and rows and this is known as __________ databases.
________________________________________

34. Data _________ is the process of analyzing data to extract information not offered by the raw data alone.
________________________________________

35. _____________ cleansing or scrubbing is the process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information.
________________________________________

36. Data warehousing is about extending the transformation of data into _________.
________________________________________

Essay Questions

37. Explain the primary difference between a database and a data warehouse.

38. Explain the multidimensional nature of data warehouses (and data marts) and the business value gained from multidimensional analysis.

39. Identify the importance of ensuring the cleanliness of information throughout an organization.

40. Explain why an organization cannot achieve 100 percent accurate and complete information.

41. Explain the relationship between business intelligence and a data warehouse.

Chapter 08 Accessing Organizational Information-Data Warehouse Answer Key

Multiple Choice Questions

1. A data warehouse is a _________ collection of information-gathered from many different ___________ databases-that supports business analysis activities and decision-making tasks.
A. Physical, transactional
B. Physical, operational
C. Logical, transactional
D. Logical, operational
This is the definition of data warehouse.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Medium
Taxonomy: Knowledge & Understanding

2. All of the following are reasons why operational systems are not appropriate for business analysis, except:
A. Does not include information from other operational applications
B. Operational systems are integrated
C. Operational information is mainly current
D. Operational information frequently has quality issues
Operational systems are not integrated.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Medium
Taxonomy: Knowledge & Understanding

3. What do data warehouses support?
A. OLAP
B. Analytical processing
C. OLTP
D. OLAP and analytical processing
Data warehouses support OLAP, which is analytical processing.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Medium
Taxonomy: Knowledge & Understanding

4. Which of the following describes ETL?
A. A process that extracts information from internal and external databases
B. A process that transforms information using a common set of enterprise definitions
C. A process that loads information into a data warehouse
D. All of the above
All of the above describe ETL.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

5. What is data mining?
A. The common term for the representation of multidimensional information
B. A particular attribute of information
C. Uses a variety of techniques to find patterns and relationships in large volumes of information and infer rules from them that predict future behavior and guide decision making
D. Process of analyzing data to extract information not offered by the raw data alone
Data mining is the process of analyzing data to extract information not offered by the raw data alone.

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Medium
Taxonomy: Knowledge & Understanding

6. What does the Data Warehousing Institute estimate that low-quality information costs U.S. businesses annually?
A. $500 million
B. $60 billion
C. $600 billion
D. It is impossible to determine
The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $600 billion annually.

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Medium
Taxonomy: Knowledge & Understanding

7. When does information cleansing occur in the data warehouse?
A. During the ETL process
B. On the information, once it is in the data warehouse
C. During the ETL process and once it is in the data warehouse
D. During the ETL process and before it is in the data warehouse
Information cleansing occurs during the ETL process and on the information once it is in the data warehouse.

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Medium
Taxonomy: Knowledge & Understanding

8. Which of the following statements is true regarding customer information?
A. Customer information can exist in several operational systems
B. Customer information in each operational system could change
C. Customer information in each operational system can be different
D. All of the above
All of the above are true in respect to customer information.

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Medium
Taxonomy: Knowledge & Understanding

9. Which of the following occurs during data cleansing?
A. Clean missing records
B. Clean redundant records
C. Clean inaccurate data
D. All of the above
The figure on information cleansing activities highlights the steps that occur during information cleansing.

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Medium
Taxonomy: Knowledge & Understanding

10. Which of the following statements is true?
A. The more complete an organization wants to get its information, the less it costs
B. The more accurate an organization wants to get its information, the less it costs
C. The less accurate an organization wants to get its information, the more it costs
D. The more complete and accurate an organization wants to get its information, the more it costs
The more complete and accurate an organization wants to get its information, the more it costs.

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Easy
Taxonomy: Knowledge & Understanding

11. What is information that people use to support their decision-making efforts?
A. Information cleansing and scrubbing
B. Data-mining tools
C. Data mining
D. Business intelligence
This is the definition of business intelligence.

AACSB: Use of Information Technology
Learning Outcome: 8.4
Level: Easy
Taxonomy: Knowledge & Understanding

12. Which of the following does not draw a parallel between the challenges in business and the challenges of war?
A. Collecting information
B. Discerning patterns and meaning in the information
C. Accurate and complete information
D. Responding to the resultant information
Accurate and complete information is not one of the parallels between the challenges in business and those of war.

AACSB: Use of Information Technology
Learning Outcome: 8.4
Level: Easy
Taxonomy: Knowledge & Understanding

13. Which of the following is not one of the principal BI enablers?
A. Technology
B. Corporate processes
C. People
D. Corporate culture
The principle BI enablers include technology, people, and corporate culture.

AACSB: Use of Information Technology
Learning Outcome: 8.4
Level: Medium
Taxonomy: Knowledge & Understanding

14. Why is Ben & Jerrys using business intelligence?
A. To improve quality
B. To create new flavors of ice cream
C. To improve financials
D. To manage distribution
The closing case discusses how Ben & Jerrys uses BI to track quality control.

AACSB: Use of Information Technology
Learning Outcome: 8.4
Level: Easy
Taxonomy: Knowledge & Understanding

15. Why is Noodles & Company using business intelligence?
A. To improve financial analysis
B. To improve corporate processes
C. To track store quality
D. To change the corporate culture
The closing case discusses how Noodles & Company is using BI to improve its financial analysis.

AACSB: Use of Information Technology
Learning Outcome: 8.4
Level: Easy
Taxonomy: Knowledge & Understanding

16. Why would a business use a data warehouse that offers strategic level, external, integrated, and historical information?
A. Identify trends
B. Make projections
C. Decide key business issues
D. All of the above
Businesses use data warehouses for all of the above.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

17. What is the primary purpose of a data warehouse?
A. To aggregate information throughout an organization into multiple repositories in such a way that employees can make decisions and undertake business analysis activities.
B. To disaggregate information throughout an organization into multiple repositories in such a way that employees can make decisions and undertake business analysis activities.
C. To aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.
D. To disaggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.
The purpose of a data warehouse is to aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Medium
Taxonomy: Knowledge & Understanding

18. Lands End created an organization wide data warehouse so all its employees could access organizational information. Lands End soon found out that there could be too much of a good thing. Many of its employees would not use the data warehouse because it was simply too big, too complicated, and had too much irrelevant information. Lands End knew there was valuable information in its data warehouse, and it had to find a way for its employees to easily access the information. What was Lands End solution?
A. Build a better, more efficient data warehouse
B. Build a better, more efficient transactional database
C. Build a data mart
D. Build a data-driven website
Lands End choose to build data marts to fix its problem with too much information.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

19. A relational database contains information in a series of two-dimensional tables. How is data contained in a data warehouse and data mart?
A. Information is multidimensional, meaning it contains a single layer data in a table format.
B. Information is two-dimensional, meaning it contains a single layer data in a table format.
C. Information is two-dimensional, meaning it contains layers of columns and rows.
D. Information is multidimensional, meaning it contains layers of columns and rows.
Information in a data warehouse is multidimensional, meaning it contains layers of columns and rows.

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

20. What is a dimension?
A. A particular attribute of information.
B. A particular entity of information.
C. A particular relational database.
D. A particular single repository.
This is the definition of dimension.

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Easy
Taxonomy: Knowledge & Understanding

21. A dimension is a particular attribute of information. Each layer in a data warehouse or data mart represents information according to an additional dimension. What is the common term for the representation of multidimensional information?
A. Table
B. Block
C. Cube
D. All of the above
This is the definition of cube.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

22. Achieving perfect information is almost impossible. The more complete and accurate an organization wants its information to be, the more it costs. Which two variables are used to determine the trade-off for perfect information?
A. Accuracy versus completeness
B. Accessibility versus completeness
C. Accuracy versus complexity
D. Accessibility versus complexity
Accuracy versus completeness determine the trade-off for perfect information.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

23. Which of the following are the principle BI enablers?
A. Technology, processes, and customer culture
B. Technology, people, and customer culture
C. Technology, processes, and corporate culture
D. Technology, people, and corporate culture
Technology, people, and corporate culture are the three enablers of BI.

AACSB: Use of Information Technology
Learning Outcome: 8.4
Level: Easy
Taxonomy: Knowledge & Understanding

True / False Questions

24. The primary purpose of a data warehouse is to perform transactional processes.
FALSE
The primary purpose of a data warehouse is to perform analytical process.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

25. Extraction, transformation, and loading is a process that extracts information from internal databases, transforms the information using a common set of enterprise definitions, and loads the information into an external database.
FALSE
Extraction, transformation, and loading is a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Medium
Taxonomy: Knowledge & Understanding

26. A dimension is a particular attribute of information.
TRUE
This is the definition of dimension.

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

27. The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $60 billion annually.
FALSE
The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $600 billion annually.

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Medium
Taxonomy: Knowledge & Understanding

28. The data warehouse is a location for all of a businesss information.
FALSE
The data warehouse is not a location for all of a businesss information.

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

Fill in the Blank Questions

29. A data warehouse is a ___________ collection of information gathered from many different operational database that supports business analysis activities and decision-making tasks.
Logical

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

30. A data __________ contains a subset of data warehouse information.
Mart

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

31. A(n) __________ is a particular attribute of information.
Dimension

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

32. A(n) ___________ is the common term for the representation of multidimensional information.
Cube

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

33. Data information in a data warehouse contains layers of columns and rows and this is known as __________ databases.
Multidimensional

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

34. Data _________ is the process of analyzing data to extract information not offered by the raw data alone.
Mining

AACSB: Use of Information Technology
Learning Outcome: 8.2
Level: Easy
Taxonomy: Knowledge & Understanding

35. _____________ cleansing or scrubbing is the process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information.
Information

AACSB: Use of Information Technology
Learning Outcome: 8.3
Level: Easy
Taxonomy: Knowledge & Understanding

36. Data warehousing is about extending the transformation of data into _________.
Information

AACSB: Use of Information Technology
Learning Outcome: 8.1
Level: Easy
Taxonomy: Knowledge & Understanding

Essay Questions

37. Explain the primary difference between a database and a data warehouse.
The primary difference between a database and a data warehouse is that a database stores information for a single application, whereas a data warehouse stores information from multiple databases, or multiple applications, and external information such as industry information. This enables cross-functional analysis, industry analysis, market analysis, etc. all from a single repository. Data warehouses support only analytical processing (OLAP).

AACSB: Reflective Thinking Skills
Learning Outcome: 8.1
Level: Easy
Taxonomy: Application and Analysis

38. Explain the multidimensional nature of data warehouses (and data marts) and the business value gained from multidimensional analysis.
Databases contain information in a series of two-dimensional tables, which means that you can only ever view two dimensions of information at one time. In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows. Each layer in a data warehouse or data mart represents information according to an additional dimension. Dimensions could include such things as products, promotions, stores, category, region, stock price, date, time, and even the weather. The ability to look at information from different dimensions can add tremendous business insight.

AACSB: Reflective Thinking Skills
Learning Outcome: 8.2
Level: Easy
Taxonomy: Application and Analysis

39. Identify the importance of ensuring the cleanliness of information throughout an organization.
An organization must maintain high quality information in the data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high quality information the organization will be unable to make good business decisions.

AACSB: Reflective Thinking Skills
Learning Outcome: 8.3
Level: Easy
Taxonomy: Application and Analysis

40. Explain why an organization cannot achieve 100 percent accurate and complete information.
Achieving perfect information is almost impossible. The more complete and accurate an organization wants to get its information, the more it costs. The tradeoff between perfect information lies in accuracy versus completeness. Accurate information means it is correct, while complete information means there are no blanks. Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% complete.

AACSB: Reflective Thinking Skills
Learning Outcome: 8.3
Level: Easy
Taxonomy: Application and Analysis

41. Explain the relationship between business intelligence and a data warehouse.
A data warehouse is an enabler of business intelligence. The purpose of a data warehouse is to pull all kinds of disparate information into a single location where it is cleansed and scrubbed for analysis.

AACSB: Reflective Thinking Skills
Learning Outcome: 8.4
Level: Easy
Taxonomy: Application and Analysis

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