This Document Contains Chapters 6 to 8 Chapter 06 Valuing Organizational Information Multiple Choice Questions 1. What are the different types of information? A. Levels, forms, granularities B. Levels, forms, data C. Levels, formats, granularities D. Data, formats, granularities Answer: C. Levels, formats, granularities Rationale: Levels, formats, and granularities are the different types of information. 2. Which of the following represents the different information levels? A. Detail, summary, aggregate B. Document, presentation, spreadsheet, database C. Individual, department, enterprise D. None of these Answer: C. Individual, department, enterprise Rationale: The different information levels include individual, department, and enterprise. 3. Which of the following represents the different information formats? A. Detail, summary, aggregate B. Document, presentation, spreadsheet, database C. Individual, department, enterprise D. None of these Answer: B. Document, presentation, spreadsheet, database Rationale: The different information formats include document, presentation, spreadsheet, and database. 4. Which of the following represents the different information granularities? A. Detail, summary, aggregate B. Document, presentation, spreadsheet, database C. Individual, department, enterprise D. None of these Answer: A. Detail, summary, aggregate Rationale: The different information granularities include detail, summary, and aggregate. 5. All of the following are characteristics of information except: A. Transactional B. Analytical C. Timeliness D. Quantity Answer: D. Quantity Rationale: Quality is the characteristic of information, not quantity. 6. What encompasses all of the information contained within a single business process or unit of work and its primary purpose is to support the performance of daily operational tasks? A. Transactional information B. Analytical information C. Timeliness D. Quality Answer: A. Transactional information Rationale: This is the definition of transactional information. 7. Which of the following is an example of transactional information? A. Withdrawing cash from an ATM B. Making an airline reservation C. Purchasing stock D. All of these Answer: D. All of these Rationale: All of these are examples of transactional information. 8. ________________ achieved great success by managing information, while _________ was unsuccessful at managing information. A. Samsung Electronics, Staples B. Staples, Samsung Electronics C. Office Max, Staples D. Staples, Office Max Answer: A. Samsung Electronics, Staples Rationale: Samsung Electronics achieved great success by managing information, while Staples was unsuccessful at managing information. 9. What encompasses all organizational information and its primary purpose is to support the performance of managerial analysis tasks? A. Transactional information B. Analytical information C. Timeliness D. Quality Answer: B. Analytical information Rationale: This is the definition of analytical information. 10. Which of the following is an example of transactional information? A. Trend projection B. Sales projection C. Purchasing stock D. All of these Answer: C. Purchasing stock Rationale: Purchasing stock is an example of transactional information. 11. What is immediate, up-to-date information? A. Real-time information B. Real-time systems C. Information granularity D. All of these Answer: A. Real-time information Rationale: This is the definition of real-time information. 12. What provides real-time information in feedback to query requests? A. Real-time information B. Real-time systems C. Information level D. All of these Answer: B. Real-time systems Rationale: This is the definition of real-time information systems. 13. What is one of the biggest pitfalls associated with real-time information? A. It is only available to high-level executives due to the expense. B. It is only available in aggregate levels of granularity. C. It continually changes. D. It rarely changes. Answer: C. It continually changes. Rationale: Information continually changes and this can cause issues with real-time information. 14. Which of the following is not one of the five characteristics common to high-quality information? A. Accuracy B. Completeness C. Quantity D. Consistency Answer: C. Quantity Rationale: Accuracy, completeness, consistency, uniqueness, and timeliness are the characteristics of high-quality information. 15. Which of the following implies that aggregate or summary information is in agreement with detailed information? A. Uniqueness B. Completeness C. Consistency D. Accuracy Answer: C. Consistency Rationale: This is the definition of consistency. 16. Which of the following implies that information is current with respect to the business requirement? A. Uniqueness B. Accuracy C. Consistency D. Timeliness Answer: D. Timeliness Rationale: This is the definition of timeliness. 17. What is it called when each transaction, entity, and event is represented only once in the information? A. Uniqueness B. Accuracy C. Consistency D. Timeliness Answer: A. Uniqueness Rationale: This is the definition of uniqueness. 18. What is a real-time system? A. Provides immediate, up-to-date information. B. Provides real-time information in feedback to query requests. C. Encompasses all organization information, and its primary purpose is to support the performance of managerial analysis tasks. D. Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performance of daily operational tasks. Answer: B. Provides real-time information in feedback to query requests. Rationale: This is the definition of a real-time system. True/False Questions 19. Organizational information comes at different levels and in different formats and granularities. Answer: True Rationale: Employees must be able to correlate the different formats, levels, and granularities of information. 20. Reports for each salesperson, product, and part are examples of detailed, or fine, information granularities. Answer: True Rationale: Information granularities include detailed (or fine) information, such as reports for each salesperson, product, or part. 21. Purchasing stocks is an example of analytical information. Answer: False Rationale: Purchasing stocks is an example of transactional information. 22. Transactional information is used when performing operational tasks and repetitive decisions, such as analyzing daily sales reports and production schedules to determine how much inventory to carry. Answer: True Rationale: Transactional information is used to perform operational tasks. 23. Timely information must be up-to-the-second to be accurate. Answer: False Rationale: Timely information can change for each business decision. Some decisions require weekly information, while others require daily information. Fill in the Blank Questions 24. Organizational information comes in different ___________, formats, and granularities. Answer: Levels 25. Detail, summary, and _________ are the typical information granularities. Answer: Aggregate 26. ____________ information encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performance of daily operational tasks. Answer: Transactional 27. ____________ information encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis tasks. Answer: Analytical 28. Organizations use _______________ information to make repetitive decisions. Answer: Transactional 29. Organizations use _________ information to make ad hoc decisions. Answer: Analytical 30. The ________ characteristic of high-quality information ensures that all the values are correct. Answer: Accuracy 31. The ________ characteristic of high-quality information ensures that none of the values are missing. Answer: Completeness 32. The ________ characteristic of high-quality information ensures that each transaction, entity, and event is represented only once. Answer: Uniqueness 33. The ________ characteristic of high-quality information ensures that the information is current with respect to the business requirement. Answer: Timeliness Essay Questions 34. Describe the broad levels, formats, and granularities of information. Answer: Information levels include individual, department, and enterprise. Information formats include document, presentation, spreadsheet, and database. Information granularities include detail, summary, and aggregate. 35. List, describe, and provide an example of each of the five characteristics of high-quality information. Answer: Accuracy determines if all values are correct. Example-Is the name spelled correctly? Completeness determines if any values are missing. Example-Is the address complete? Consistency ensures that aggregate or summary information is in agreement with detailed information. Example-Do totals equal the true total of the individual fields? Uniqueness ensures that each transaction, entity, and event is represented only once in the information. Example-Are there any duplicate customers? Timeliness determines if the information is current with respect to the business requirement. Example-Is the information updated weekly? 36. List the four primary sources of low-quality information. Answer: (1) Online customers intentionally enter inaccurate information to protect their privacy. (2) Information from different systems that have different information entry standards and formats. (3) Call center operators enter abbreviated or erroneous information by accident or to save time. (4) Third-party and external information contains inconsistencies, inaccuracies, and errors. 37. Assess the impact of low-quality information on an organization and the benefits of high-quality information on an organization. Answer: Using the wrong information can lead to making the wrong decision. Making the wrong decision can cost time, money, and even reputations. Business decisions are only as good as the information used to make the decision. Low-quality information leads to low-quality business decisions. High-quality information can significantly improve the chances of making a good business decision and directly affect an organization's bottom line. Chapter 07 Storing Organizational Information – Databases Multiple Choice Questions 1. Which of the following types of information can be found in a database? A. Inventory B. Transactions C. Employees D. All of these Answer: D. All of these Rationale: A database maintains information on inventory, transactions, and employees. 2. Which of the following database structures stores information in a treelike structure that allows repeating information using parent/child relationships, in such a way that it cannot have too many relationships? A. Hierarchical database B. Network database C. Relational database model D. All of these Answer: A. Hierarchical database Rationale: This is the definition of a hierarchical database. 3. Which of the following database structures offers a flexible way of representing objects and their relationships? A. Hierarchical database B. Network database C. Relational database model D. All of these Answer: B. Network database Rationale: This is the definition of a network database model. 4. In the relational database model, what is a person, place, thing, transaction, or event about which information is stored? A. Entity B. Logical view C. Attribute D. Physical view Answer: A. Entity Rationale: This is the definition of entity. 5. In the relational database model, what is a characteristic or property of an entity? A. Entity B. Logical view C. Attribute D. Physical view Answer: C. Attribute Rationale: This is the definition of attribute. 6. What are characteristics or properties of an entity called? A. Attributes B. Fields C. Columns D. All of these Answer: D. All of these Rationale: Attributes are also called fields or columns. 7. Why do relational databases use primary keys and foreign keys? A. To create a database. B. To create physical relationships. C. To create logical relationships. D. All of these. Answer: C. To create logical relationships. Rationale: Keys are used to create logical relationships. 8. What is a primary key? A. A field (or group of fields) that uniquely identifies a given entity in a table. B. A primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables. C. Characteristics or properties of an entity. D. A field (or group of fields) that uniquely identifies a given attribute in a table. Answer: A. A field (or group of fields) that uniquely identifies a given entity in a table. Rationale: This is the definition of primary key. 9. What is a foreign key? A. A field (or group of fields) that uniquely identifies a given entity in a table. B. A primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables. C. Characteristics or properties of an entity. D. A field (or group of fields) that uniquely identifies a given attribute in a table. Answer: B. A primary key of one table that appears as an attribute in another table and acts to provide a logical relationship between the two tables. Rationale: This is the definition of foreign key. 10. All of the following are advantages of database-stored information except: A. Increased flexibility B. Increased performance C. Increased information redundancy D. Increased information integrity Answer: C. Increased information redundancy Rationale: Database-stored information reduces information redundancy. 11. Which of the following is incorrect in reference to a database? A. Can be relational or network. B. Information is accessed by logical structure. C. Information is accessed by physical structure. D. Users can access different views of information. Answer: C. Information is accessed by physical structure. Rationale: A database accesses information by logical structure and stores information by physical structure. 12. What is the physical view of information? A. Deals with the physical storage of information on a storage device such as a hard disk. B. Deals with the logical storage of information on a storage device such as a hard disk. C. Focuses on how users logically access information to meet their particular business needs. D. Focuses on how users physically access information to meet their particular business needs. Answer: A. Deals with the physical storage of information on a storage device such as a hard disk. Rationale: This is the definition of physical view. 13. Which of the following is correct in reference to a database? A. A database can support only one logical view. B. A database can support many physical views. C. A database can support many logical views. D. A database can support up to three logical views. Answer: C. A database can support many logical views. Rationale: A database can support many logical views. 14. What refers to how well a system can adapt to increased demands? A. Scalability B. Performance C. Redundancy D. Information integrity Answer: A. Scalability Rationale: This is the definition of scalability. 15. Which of the following measures how quickly a system performs a certain process or transaction? A. Scalability B. Performance C. Redundancy D. Information integrity Answer: B. Performance Rationale: This is the definition of performance. 16. What is information redundancy? A. Duplication of information. B. Storing the same information in multiple places. C. Storing duplicate information in multiple places. D. All of these. Answer: D. All of these. Rationale: Redundancy is all of these. 17. What is the primary problem with redundant information? A. It is difficult to determine which values are the most current. B. It is often inconsistent. C. It is difficult to determine which values are the most accurate. D. All of these. Answer: D. All of these. Rationale: All of these are problems with redundant information. 18. Which of the following is true in regard to eliminating redundant information? A. Uses additional hard disk space. B. Makes performing information updates harder. C. Improves information quality. D. All of these. Answer: C. Improves information quality. Rationale: Eliminating redundant information improves the quality of the information, uses less hard disk space, and makes performing updates easier. 19. What are the rules that help ensure the quality of information? A. Information integrity B. Integrity constraints C. Relational integrity constraints D. Business-critical integrity constraints Answer: B. Integrity constraints Rationale: This is the definition of integrity constraints. 20. What are the rules that enforce basic and fundamental information-based constraints? A. Information integrity B. Integrity constraint C. Business-critical integrity constraint D. Relational integrity constraint Answer: D. Relational integrity constraint Rationale: This is the definition of relational integrity constraints. 21. Which of the following is a valid type of integrity constraint? A. Relational-critical integrity constraint B. Business integrity constraint C. Relational integrity constraint D. Business-critical integrity constraint Answer: D. Business-critical integrity constraint Rationale: Business-critical integrity constraint is a valid integrity constraint. 22. What type of integrity constraint does not allow someone to create an order for a nonexistent customer? A. Relational integrity constraint B. Business-critical integrity constraint C. Information-critical integrity constraint D. None of these Answer: A. Relational integrity constraint Rationale: This is an example of relational integrity constraints. 23. All of the following are business-critical integrity constraints except: A. The system will not allow an entry for an order for a nonexistent customer. B. The system will not allow returns of fresh produce after 15 days past delivery. C. The system will not allow shipping a product to a customer who does not have a valid address. D. The system will not allow shipping a nonexistent product to a customer. Answer: B. The system will not allow returns of fresh produce after 15 days past delivery. Rationale: Not allowing fresh produce to be returned after 15 days would be a business-critical integrity constraint. A and C represent relational integrity constraints. 24. Which of the following uses a DBMS to interact with a database? A. Users of accounting programs B. Users of human resource programs C. Users of marketing programs D. All of these Answer: D. All of these Rationale: The figure "Interacting Directly and Indirectly with a Database through a DBMS" displays these three types of database interactions. 25. What is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database? A. Customer-driven website B. Data-driven website C. Customer-driven database D. Data-driven database Answer: B. Data-driven website Rationale: This is the definition of data-driven website. 26. What type of website is best to build for a general informational website with static information? A. Data-driven website B. Static website C. Relational website D. All of these Answer: B. Static website Rationale: For a general informational website with static information, it is best to build a "static" website, one that a developer can update on an as-needed basis, perhaps a few times a year. 27. What type of website is best to build for a website with continually changing information, including press releases, new product information, and updated pricing? A. Data-driven website B. Static website C. Relational website D. All of these Answer: A. Data-driven website Rationale: For a website with continually changing information, such as press releases, new product information, and updated pricing, it is best to build a data-driven website. 28. Which of the following is not an advantage of building a data-driven website? A. Minimizes human error. B. Cuts production and update costs. C. Improves or maximizes stability. D. Minimizes or reduces efficiency. Answer: D. Minimizes or reduces efficiency. Rationale: A data-driven website adds more efficiency; it does not minimize or decrease efficiency. 29. What is a forward integration? A. Takes information entered into a given system and sends it to the application-generation component. B. Takes information entered into a given system and sends it automatically to all downstream systems and processes. C. Takes information entered into a given system and sends it automatically to all upstream systems and processes. D. Takes information entered into a given system and sends it to the DBMS. Answer: B. Takes information entered into a given system and sends it automatically to all downstream systems and processes. Rationale: This is the definition of forward integration. 30. What is a backward integration? A. Takes information entered into a given system and sends it to the application-generation component. B. Takes information entered into a given system and sends it automatically to all downstream systems and processes. C. Takes information entered into a given system and sends it automatically to all upstream systems and processes. D. Takes information entered into a given system and sends it to the DBMS. Answer: C. Takes information entered into a given system and sends it automatically to all upstream systems and processes. Rationale: This is the definition of backward integration. 31. What is an integration? A. Allows separate systems to communicate directly with each other. B. Takes information entered into a given system and sends it to the database. C. Takes information entered into a given system and sends it to other processes. D. Takes information entered into a given system and sends it to the DBMS. Answer: A. Allows separate systems to communicate directly with each other. Rationale: This is the definition of integration. True/False Questions 32. A foreign key is a field (or group of fields) that uniquely identifies a given entity in a table. Answer: False Rationale: A primary key is a field (or group of fields) that uniquely identifies a given entity in a table. 33. One of the advantages found in a relational database is increased information redundancy. Answer: False Rationale: Relational databases reduce information redundancy, not increase information redundancy. 34. Relational integrity constraints are rules that enforce basic and fundamental information-based constraints. Answer: True Rationale: This is the definition of relational integrity constraints. 35. A data-driven website is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database. Answer: True Rationale: This is the definition of data-driven website. 36. Ideally, an organization wants to build only forward integrations. Answer: False Rationale: Ideally, an organization wants to build both forward and backward integrations. Fill in the Blank Questions 37. The ___________ database model is a type of database that stores its information in the form of logically related two-dimensional tables. Answer: Relational 38. Customer ID, Customer Name, Contact Name, and Customer Phone are all types of ____________. Answer: Attributes 39. A(n) ___________ key in the relational database model is a primary key of one table that appears as an attribute in another table. Answer: Foreign 40. A _______________ key is a field that uniquely identifies a given entity in a table. Answer: Primary 41. The _________ view of information deals with the physical storage of information on a storage device such as a hard disk. Answer: Physical 42. The ________ view of information focuses on how users logically access information to meet their particular business needs. Answer: Logical 43. ______________ is the duplication of information, or storing the same information in multiple places. Answer: Redundancy 44. ______________ integrity constraints are rules that enforce business rules vital to an organization's success. Answer: Business-critical 45. _________ integrity is a measure of the quality of information. Answer: Information Essay Questions 46. Evaluate the advantages of the relational database model. Answer: Database advantages from a business perspective include increased flexibility, increased scalability and performance, reduced information redundancy, increased information integrity (quality), and increased information security. 47. Compare relational integrity constraints and business-critical integrity constraints. Answer: Relational integrity constraints are rules that enforce basic and fundamental information-based constraints. Business-critical integrity constraints are rules that enforce business rules vital to an organization's success and often require more insight and knowledge than operational integrity constraints. 48. Describe the role and purpose of a database management system. Answer: A database management system (DBMS) is software through which users and application programs interact with a database. The user sends requests to the DBMS and the DBMS performs the actual manipulation of the information in the database. There are two primary ways that users can interact with a DBMS, directly and indirectly. 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 Answer: D. Logical, operational Rationale: This is the definition of data warehouse. 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. Answer: B. Operational systems are integrated. Rationale: Operational systems are not integrated. 3. What do data warehouses support? A. OLAP B. Analytical processing C. OLTP D. OLAP and analytical processing Answer: D. OLAP and analytical processing Rationale: Data warehouses support OLAP, which is 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 these. Answer: D. All of these. Rationale: All of these describe ETL. 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. Answer: D. Process of analyzing data to extract information not offered by the raw data alone. Rationale: Data mining is the 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. Answer: C. $600 billion. Rationale: The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $600 billion annually. 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. Answer: C. During the ETL process and once it is in the data warehouse. Rationale: Information cleansing occurs during the ETL process and on the information once 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 these. Answer: D. All of these. Rationale: All of these are true in respect to customer information. 9. Which of the following occurs during data cleansing? A. Clean missing records. B. Clean redundant records. C. Clean inaccurate data. D. All of these. Answer: D. All of these. Rationale: The figure on information cleansing activities highlights the steps that occur during information cleansing. 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. Answer: D. The more complete and accurate an organization wants to get its information, the more it costs. Rationale: 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 Answer: D. Business intelligence Rationale: This is the definition of 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. Answer: C. Accurate and complete information. Rationale: Accurate and complete information is not one of the parallels between the challenges in business and those of war. 13. Which of the following is not one of the principal BI enablers? A. Technology B. Corporate processes C. People D. Corporate culture Answer: B. Corporate processes Rationale: The principle BI enablers include technology, people, and corporate culture. 14. Why is Ben & Jerry's using business intelligence? A. To improve quality. B. To create new flavors of ice cream. C. To improve financials. D. To manage distribution. Answer: A. To improve quality. Rationale: The closing case discusses how Ben & Jerry's uses BI to track quality control. 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. Answer: A. To improve financial analysis. Rationale: The closing case discusses how Noodles & Company is using BI to improve its financial analysis. 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 these. Answer: D. All of these. Rationale: Businesses use data warehouses for all of these. 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. Answer: 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. Rationale: 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. 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's 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. Answer: C. Build a data mart. Rationale: Lands' End chose to build data marts to fix its problem with too much information. 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 of data in a table format. B. Information is two-dimensional, meaning it contains a single layer of 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. Answer: D. Information is multidimensional, meaning it contains layers of columns and rows. Rationale: Information in a data warehouse 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. Answer: A. A particular attribute of information. Rationale: This is the definition of dimension. 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 these Answer: C. Cube Rationale: This is the definition of a cube. 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. Answer: A. Accuracy versus completeness. Rationale: Accuracy versus completeness determines the trade-off for perfect information. 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 Answer: D. Technology, people, and corporate culture Rationale: Technology, people, and corporate culture are the three enablers of BI. True/False Questions 24. The primary purpose of a data warehouse is to perform transactional processes. Answer: False Rationale: The primary purpose of a data warehouse is to perform analytical processes. 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. Answer: False Rationale: 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. 26. A dimension is a particular attribute of information. Answer: True Rationale: This is the definition of dimension. 27. The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $60 billion annually. Answer: False Rationale: The Data Warehousing Institute estimates that low-quality information costs U.S. businesses $600 billion annually. 28. The data warehouse is a location for all of a business's information. Answer: False Rationale: The data warehouse is not a location for all of a business's information. Fill in the Blank Questions 29. A data warehouse is a ___________ collection of information gathered from many different operational databases that supports business-analysis activities and decision-making tasks. Answer: Logical 30. A data __________ contains a subset of data warehouse information. Answer: Mart 31. A(n) __________ is a particular attribute of information. Answer: Dimension 32. A(n) ___________ is the common term for the representation of multidimensional information. Answer: Cube 33. Data information in a data warehouse contains layers of columns and rows, and this is known as __________ databases. Answer: Multidimensional 34. Data _________ is the process of analyzing data to extract information not offered by the raw data alone. Answer: Mining 35. _____________ cleansing or scrubbing is the process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Answer: Information 36. Data warehousing is about extending the transformation of data into _________. Answer: Information Essay Questions 37. Explain the primary difference between a database and a data warehouse. Answer: 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). 38. Explain the multidimensional nature of data warehouses (and data marts) and the business value gained from multidimensional analysis. Answer: 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. 39. Identify the importance of ensuring the cleanliness of information throughout an organization. Answer: 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. 40. Explain why an organization cannot achieve 100 percent accurate and complete information. Answer: Achieving perfect information is almost impossible. The more complete and accurate an organization wants to get its information, the more it costs. The trade-off for perfect information lies in accuracy verses 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 percent accurate and 65 percent complete. 41. Explain the relationship between business intelligence and a data warehouse. Answer: 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. Test Bank for Business Driven Technology Paige Baltzan 9780073376844, 9781259924927, 9781260727814, 9780073376905
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