Business intelligence And Analytics System For Decision Support 10th Edition by Sharda – Test Bank
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Sample
Questions
Business Intelligence and Analytics: Systems for Decision
Support, 10e (Sharda)
Chapter 4 Business Reporting, Visual Analytics, and
Business Performance Management
1) The WebFOCUS BI platform in the Travel and Transport case
study decreased clients’ reliance on the IT function when seeking system
reports.
Answer: TRUE
Diff: 1 Page Ref: 137
2) The dashboard for the WebFOCUS BI platform in the Travel and
Transport case study required client side software to operate.
Answer: FALSE
Diff: 2 Page Ref: 138
3) Data is the contextualization of information, that is,
information set in context.
Answer: FALSE
Diff: 1 Page Ref: 139
4) The main difference between service level agreements and key
performance indicators is the audience.
Answer: TRUE
Diff: 2 Page Ref: 143
5) The balanced scorecard is a type of report that is based
solely on financial metrics.
Answer: FALSE
Diff: 1 Page Ref: 143
6) The data storage component of a business reporting system
builds the various reports and hosts them for, or disseminates them to users.
It also provides notification, annotation, collaboration, and other services.
Answer: FALSE
Diff: 2 Page Ref: 144
7) In the FEMA case study, the BureauNet software was the
primary reason behind the increased speed and relevance of the reports FEMA
employees received.
Answer: TRUE
Diff: 2 Page Ref: 145
8) Google Maps has set new standards for data visualization with
its intuitive Web mapping software.
Answer: TRUE
Diff: 2 Page Ref: 149
9) There are basic chart types and specialized chart types. A
Gantt chart is a specialized chart type.
Answer: TRUE
Diff: 2 Page Ref: 152
10) Visualization differs from traditional charts and graphs in
complexity of data sets and use of multiple dimensions and measures.
Answer: TRUE
Diff: 2 Page Ref: 155-156
11) When telling a story during a presentation, it is best to
avoid describing hurdles that your character must overcome, to avoid souring
the mood.
Answer: FALSE
Diff: 2 Page Ref: 157
12) For best results when deploying visual analytics
environments, focus only on power users and management to get the best return
on your investment.
Answer: FALSE
Diff: 2 Page Ref: 158
13) Information density is a key characteristic of performance
dashboards.
Answer: TRUE
Diff: 2 Page Ref: 160
14) In the Dallas Cowboys case study, the focus was on using
data analytics to decide which players would play every week.
Answer: FALSE
Diff: 2 Page Ref: 161
15) One comparison typically made when data is presented in
business intelligence systems is a comparison against historical values.
Answer: TRUE
Diff: 1 Page Ref: 162
16) The best key performance indicators are derived
independently from the company’s strategic goals to enable developers to “think
outside of the box.”
Answer: FALSE
Diff: 3 Page Ref: 166
17) The BPM development cycle is essentially a one-shot process
where the requirement is to get it right the first time.
Answer: FALSE
Diff: 2 Page Ref: 167
18) With key performance indicators, driver KPIs have a
significant effect on outcome KPIs, but the reverse is not necessarily true.
Answer: TRUE
Diff: 2 Page Ref: 171
19) With the balanced scorecard approach, the entire focus is on
measuring and managing specific financial goals based on the organization’s
strategy.
Answer: FALSE
Diff: 2 Page Ref: 175
20) A Six Sigma deployment can be deemed effective even if the
number of defects are not reduced to 3.4 defects per million.
Answer: FALSE
Diff: 2 Page Ref: 176
21) For those executives who do not have the time to go through
lengthy reports, the best alternative is the
1. A)
last page of the report.
2. B)
raw data that informed the report.
3. C)
executive summary.
4. D)
charts in the report.
Answer: C
Diff: 2 Page Ref: 140
22) All of the following are true about external reports between
businesses and the government EXCEPT
1. A)
they can include tax and compliance reporting.
2. B)
they can be filed nationally or internationally.
3. C)
they are standardized for the most part to reduce the regulatory burden.
4. D)
their primary focus is government.
Answer: D
Diff: 2 Page Ref: 140
23) Kaplan and Norton developed a report that presents an
integrated view of success in the organization called
1. A)
metric management reports.
2. B)
balanced scorecard-type reports.
3. C)
dashboard-type reports.
4. D)
visual reports.
Answer: B
Diff: 2 Page Ref: 143
24) Which component of a reporting system contains steps
detailing how recorded transactions are converted into metrics, scorecards, and
dashboards?
1. A)
data supply
2. B)
business logic
3. C)
extract, transform and load
4. D)
assurance
Answer: B
Diff: 2 Page Ref: 144
25) Which of the following is LEAST related to data/information
visualization?
1. A)
information graphics
2. B)
scientific visualization
3. C)
statistical graphics
4. D)
graphic artwork
Answer: D
Diff: 2 Page Ref: 145
26) The Internet emerged as a new medium for visualization and
brought all the following EXCEPT
1. A)
worldwide digital distribution of visualization.
2. B)
immersive environments for consuming data.
3. C)
new forms of computation of business logic.
4. D)
new graphics displays through PC displays.
Answer: C
Diff: 2 Page Ref: 149
27) Which kind of chart is described as an enhanced variant of a
scatter plot?
1. A)
heat map
2. B)
bullet
3. C)
pie chart
4. D)
bubble chart
Answer: D
Diff: 3 Page Ref: 151
28) Which type of visualization tool can be very helpful when
the intention is to show relative proportions of dollars per department
allocated by a university administration?
1. A)
heat map
2. B)
bullet
3. C)
pie chart
4. D)
bubble chart
Answer: C
Diff: 3 Page Ref: 151
29) Which type of visualization tool can be very helpful when a
data set contains location data?
1. A)
bar chart
2. B)
geographic map
3. C)
highlight table
4. D)
tree map
Answer: B
Diff: 2 Page Ref: 152
30) Which type of question does visual analytics seeks to
answer?
1. A)
Why did it happen?
2. B)
What happened yesterday?
3. C)
What is happening today?
4. D)
When did it happen?
Answer: A
Diff: 2 Page Ref: 156
31) When you tell a story in a presentation, all of the following
are true EXCEPT
1. A) a
story should make sense and order out of a lot of background noise.
2. B) a
well-told story should have no need for subsequent discussion.
3. C)
stories and their lessons should be easy to remember.
4. D)
the outcome and reasons for it should be clear at the end of your story.
Answer: B
Diff: 2 Page Ref: 157
32) Benefits of the latest visual analytics tools, such as SAS
Visual Analytics, include all of the following EXCEPT
1. A)
mobile platforms such as the iPhone are supported by these products.
2. B) it
is easier to spot useful patterns and trends in the data.
3. C)
they explore massive amounts of data in hours, not days.
4. D)
there is less demand on IT departments for reports.
Answer: C
Diff: 2 Page Ref: 158
33) What is the management feature of a dashboard?
1. A)
operational data that identify what actions to take to resolve a problem
2. B)
summarized dimensional data to analyze the root cause of problems
3. C)
summarized dimensional data to monitor key performance metrics
4. D)
graphical, abstracted data to monitor key performance metrics
Answer: A
Diff: 3 Page Ref: 162
34) What is the fundamental challenge of dashboard design?
1. A)
ensuring that users across the organization have access to it
2. B)
ensuring that the organization has the appropriate hardware onsite to support
it
3. C)
ensuring that the organization has access to the latest web browsers
4. D)
ensuring that the required information is shown clearly on a single screen
Answer: D
Diff: 3 Page Ref: 162
35) Contextual metadata for a dashboard includes all the
following EXCEPT
1. A)
whether any high-value transactions that would skew the overall trends were
rejected as a part of the loading process.
2. B)
which operating system is running the dashboard server software.
3. C) whether
the dashboard is presenting “fresh” or “stale” information.
4. D)
when the data warehouse was last refreshed.
Answer: B
Diff: 2 Page Ref: 165
36) Dashboards can be presented at all the following levels
EXCEPT
1. A)
the visual dashboard level.
2. B) the
static report level.
3. C)
the visual cube level.
4. D)
the self-service cube level.
Answer: C
Diff: 2 Page Ref: 166
37) Why is a performance management system superior to a
performance measurement system?
1. A)
because performance measurement systems are only in their infancy
2. B)
because measurement automatically leads to problem solution
3. C)
because performance management systems cost more
4. D)
because measurement alone has little use without action
Answer: D
Diff: 3 Page Ref: 172
38) Why is the customer perspective important in the balanced
scorecard methodology?
1. A)
because dissatisfied customers will eventually hurt the bottom line
2. B)
because customers should always be included in any design methodology
3. C)
because customers understand best how the firm’s internal processes should work
4. D)
because companies need customer input into the design of the balanced scorecard
Answer: A
Diff: 2 Page Ref: 173
39) All of the following statements about balanced scorecards
and dashboards are true EXCEPT
1. A)
scorecards are less preferred at operational and tactical levels.
2. B)
dashboards would be the preferred choice to monitor production quality.
3. C)
scorecards are best for real-time tracking of a marketing campaign.
4. D)
scorecards are preferred for tracking the achievement of strategic goals.
Answer: C
Diff: 3 Page Ref: 175
40) What is Six Sigma?
1. A) a
letter in the Greek alphabet that statisticians use to measure process
variability
2. B) a
methodology aimed at reducing the number of defects in a business process
3. C) a
methodology aimed at reducing the amount of variability in a business process
4. D) a
methodology aimed at measuring the amount of variability in a business process
Answer: B
Diff: 2 Page Ref: 176
41) A(n) ________ is a communication artifact, concerning
business matters, prepared with the specific intention of relaying information
in a presentable form.
Answer: business report
Diff: 2 Page Ref: 135
42) Travel and Transport created an online BI self-service
system that allowed ________ to access information directly.
Answer: clients
Diff: 2 Page Ref: 137
43) There are only a few categories of business report:
informal, ________, and short.
Answer: formal
Diff: 2 Page Ref: 140
44) In the Delta Lloyd Group case study, the ________ is the
stage of the reporting process in which consolidated figures are cited,
formatted, and described to form the final text of the report.
Answer: last mile
Diff: 2 Page Ref: 142
45) ________ management reports are used to manage business
performance through outcome-oriented metrics in many organizations.
Answer: Metric
Diff: 2 Page Ref: 143
46) In the Blastrac case study, Tableau analytics software was
used to replace massive ________ that were loaded with data from multiple ERP
systems.
Answer: spreadsheets
Diff: 2 Page Ref: 146
47) ________ charts are useful in displaying nominal data or
numerical data that splits nicely
into different categories so you can quickly see comparative
results and trends.
Answer: Bar
Diff: 1 Page Ref: 151
48) ________ charts or network diagrams show precedence
relationships among the project activities/tasks.
Answer: PERT
Diff: 1 Page Ref: 152
49) ________ are typically used together with other charts and
graphs, as opposed to by themselves, and show postal codes, country names, etc.
Answer: Maps
Diff: 1 Page Ref: 152
50) Typical charts, graphs, and other visual elements used in
visualization-based applications usually involve ________ dimensions.
Answer: two
Diff: 2 Page Ref: 155
51) Visual analytics is widely regarded as the combination of
visualization and ________ analytics.
Answer: predictive
Diff: 2 Page Ref: 156
52) Dashboards present visual displays of important information
that are consolidated and arranged on a single ________.
Answer: screen
Diff: 1 Page Ref: 160
53) With dashboards, the layer of information that uses
graphical, abstracted data to keep tabs on key performance metrics is the
________ layer.
Answer: monitoring
Diff: 2 Page Ref: 162
54) In the Saudi Telecom company case study, information
________ software allowed managers to see trends and correct issues before they
became problems.
Answer: visualization
Diff: 1 Page Ref: 163
55) Performance dashboards enable ________ operations that allow
the users to view underlying data sources and obtain more detail.
Answer: drill-down/drill-through
Diff: 2 Page Ref: 164
56) With a dashboard, information on sources of the data being
presented, the quality and currency of underlying data provide contextual
________ for users.
Answer: metadata
Diff: 2 Page Ref: 165
57) Business performance management comprises a ________ set of
processes that link strategy to execution with the goal of optimizing business
performance.
Answer: closed-loop
Diff: 2 Page Ref: 167
58) In the Mace case study, the IBM Cognos software enabled the
rapid creation of integrated reports across 60 countries, replacing a large and
complex ________.
Answer: spreadsheet
Diff: 1 Page Ref: 169
59) A strategically aligned metric is also known as a key
________.
Answer: performance indicator
Diff: 2 Page Ref: 171
60) The ________ perspective of the organization suggested by
the balanced scorecard focuses on business processes and how well they are
running.
Answer: internal business process
Diff: 2 Page Ref: 174
61) List and describe the three major categories of business
reports.
Answer:
- Metric
management reports. Many organizations manage business
performance through outcome-oriented metrics. For external groups, these
are service-level agreements (SLAs). For internal management, they are key
performance indicators (KPIs).
- Dashboard-type
reports.
This report presents a range of different performance indicators on one
page, like a dashboard in a car. Typically, there is a set of predefined
reports with static elements and fixed structure, but customization of the
dashboard is allowed through widgets, views, and set targets for various
metrics.
- Balanced
scorecard—type reports. This is a method developed by Kaplan
and Norton that attempts to present an integrated view of success in an
organization. In addition to financial performance, balanced
scorecard—type reports also include customer, business process, and
learning and growth perspectives.
Diff: 2 Page Ref: 143
62) List five types of specialized charts and graphs.
Answer:
- Histograms
- Gantt
charts
- PERT
charts
- Geographic
maps
- Bullets
- Heat
maps
- Highlight
tables
- Tree
maps
Diff: 2 Page Ref: 151-152
63) According to Eckerson (2006), a well-known expert on BI
dashboards, what are the three layers of information of a dashboard?
Answer:
1. Monitoring.
Graphical, abstracted data to monitor key performance metrics.
2. Analysis.
Summarized dimensional data to analyze the root cause of problems.
3. Management.
Detailed operational data that identify what actions to take to resolve a
problem.
Diff: 2 Page Ref: 162
64) List five best practices of dashboard design.
Answer:
- Benchmark
key performance indicators with industry standards
- Wrap
the dashboard metrics with contextual metadata
- Validate
the dashboard design by a usability specialist
- Prioritize
and rank alerts/exceptions streamed to the dashboard
- Enrich
the dashboard with business users’ comments
- Present
information in three different levels
- Pick
the right visual construct using dashboard design principles
- Provide
for guided analytics
Diff: 2 Page Ref: 165-166
65) What are the four processes that define a closed-loop BPM
cycle?
Answer:
1. Strategize:
This is the process of identifying and stating the organization’s mission,
vision, and objectives, and developing plans (at different levels of
granularity–strategic, tactical and operational) to achieve these objectives.
2. Plan:
When operational managers know and understand the what (i.e., the
organizational objectives and goals), they will be able to come up with the how
(i.e., detailed operational and financial plans). Operational and financial
plans answer two questions: What tactics and initiatives will be pursued to
meet the performance targets established by the strategic plan? What are the
expected financial results of executing the tactics?
3. Monitor/Analyze:
When the operational and financial plans are underway, it is imperative that
the performance of the organization be monitored. A comprehensive framework for
monitoring performance should address two key issues: what to monitor and how
to monitor.
4. Act
and Adjust: What do we need to do differently? Whether a company is
interested in growing its business or simply improving its operations,
virtually all strategies depend on new projects–creating new products, entering
new markets, acquiring new customers or businesses, or streamlining some
processes.
The final part of this loop is taking action and adjusting
current actions based on analysis of problems and opportunities.
Diff: 2 Page Ref: 167-168
66) List and describe five distinguishing features of key
performance indicators.
Answer:
- Strategy. KPIs embody
a strategic objective.
- Targets. KPIs measure
performance against specific targets. Targets are defined in strategy,
planning, or budgeting sessions and can take different forms (e.g.,
achievement targets, reduction targets, absolute targets).
- Ranges. Targets have
performance ranges (e.g., above, on, or below target).
- Encodings.
Ranges are encoded in software, enabling the visual display of performance
(e.g., green, yellow, red). Encodings can be based on percentages or more
complex rules.
- Time
frames.
Targets are assigned time frames by which they must be accomplished. A
time frame is often divided into smaller intervals to provide performance
mileposts.
- Benchmarks. Targets are
measured against a baseline or benchmark. The previous year’s results
often serve as a benchmark, but arbitrary numbers or external benchmarks
may also be used.
Diff: 2 Page Ref: 171
67) What are the three nonfinancial objectives of the balanced
scorecard?
Answer:
1. Customer.
This defines how the organization should appear to its customers if it is to
accomplish its vision.
2. Internal
business process. This specifies the processes the organization must excel at in
order to satisfy its shareholders and customers.
3. Learning
and growth. This indicates how an organization can improve its ability to
change and improve in order to achieve its vision.
Diff: 2 Page Ref: 174
68) Six Sigma rests on a simple performance improvement model
known as DMAIC. What are the steps involved?
Answer:
1. Define.
Define the goals, objectives, and boundaries of the improvement activity. At
the top level, the goals are the strategic objectives of the company. At lower
levels–department or project levels–the goals are focused on specific
operational processes.
2. Measure.
Measure the existing system. Establish quantitative measures that will yield
statistically valid data. The data can be used to monitor progress toward the
goals defined in the previous step.
3. Analyze.
Analyze the system to identify ways to eliminate the gap between the current
performance of the system or process and the desired goal.
4. Improve.
Initiate actions to eliminate the gap by finding ways to do things better,
cheaper, or faster. Use project management and other planning tools to
implement the new approach.
5. Control.
Institutionalize the improved system by modifying compensation and incentive
systems, policies, procedures, manufacturing resource planning, budgets,
operation instructions, or other management systems.
Diff: 2 Page Ref: 176
69) What are the basic ingredients of a good collection of
performance measures?
Answer:
- Measures
should focus on key factors.
- Measures
should be a mix of past, present, and future.
- Measures
should balance the needs of shareholders, employees, partners, suppliers,
and other stakeholders.
- Measures
should start at the top and flow down to the bottom.
- Measures
need to have targets that are based on research and reality rather than be
arbitrary.
Diff: 2 Page Ref: 177
70) In the Expedia case study, what three steps were taken to
convert drivers of departmental performance into a scorecard?
Answer:
- Deciding
how to measure satisfaction. This required the group to determine which
measures in the 20 databases would be useful for demonstrating a
customer’s level of satisfaction. This became the basis for the scorecards
and KPIs.
- Setting
the right performance targets. This required the group to determine
whether KPI targets had short-term or long-term payoffs.
- Putting
data into context. The group had to tie the data to ongoing customer
satisfaction projects.
Diff: 2 Page Ref: 178
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