Jerey Ohlmann Test - Jeffrey Camm, James Cochran, Michael Fry, Je??...

Business Analy�cs 4e Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

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Chapter 01 - Introduction

Page 1

Multiple Choice

• The decisions concerning an organization’s goals and future plans are called _____.
• financial decisions b. tactical decisions
• strategic decisions d. operational decisions

ANSWER: c

• Tactical decisions are concerned with _____.
• the day-to-day activities of the organization
• the goals and plans of the organization
• the domain of operations managers, who are close to the customer
• how the organization should achieve the goals and objectives set by its strategy

ANSWER: d

• Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear. The company decides to

open retail stores across the major areas of the city to help complement its Internet-based strategy. This activity would be categorized as a(n) _____.

• tactical decision b. operational decision
• strategic decision d. financial decision

ANSWER: c

• _____ is the most critical step of the decision-making process.
• Choosing an alternative b. Identifying and defining the problem
• Evaluating the alternatives d. Determining the set of alternatives

ANSWER: b

• Which of the following is not an approach to making decisions?
• Tradition b. Rules of thumb
• Intuition d. Guess and check

ANSWER: d

• Data-driven decision making tends to decrease a firm's _____.
• market value b. productivity
• risk d. profit

ANSWER: c

• Data dashboards are a type of _____analytics.
• predictive b. descriptive
• prescriptive d. decision

ANSWER: b

• The extraction of information on the number of shipments, how much was included in each shipment, the date each

shipment was sent, and so on from the manufacturing plant’s database exemplifies _____

• spreadsheet models b. data dashboards
• data mining d. data queries

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Chapter 01 - Introduction

Page 2

ANSWER: d

• Corporate-level managers use ______ to summarize sales by region, current inventory levels, and other company-wide

metrics all in a single screen.

• simulations b. crosstabulation
• data dashboards d. tables

ANSWER: c

• A forecast that helps direct police officers to areas where crimes are likely to occur based on past data is an example

of _____.

• predictive analytics b. decision analysis
• prescriptive analytics d. descriptive analytics

ANSWER: a

• Which one of the following is used in predictive analytics?
• Data dashboard b. Linear regression
• Data visualization d. Optimization model

ANSWER: b

• A retail store owner offers a discount on product A and predicts that the customers would purchase products B and C

in addition to product A. Identify the technique used to make such a prediction.

• Data query b. Simulation
• Data mining d. Data dashboards

ANSWER: c

• _____ are used in the pharmaceutical industry to assess the risk of introducing a new drug.
• Data dashboards b. Charts
• Spreadsheet models d. Simulations

ANSWER: d

• Which of the following analytical techniques helps us arrive at the best decision?
• Predictive analytics b. Data mining
• Prescriptive analytics d. Descriptive analytics

ANSWER: c

• Simulation optimization helps _____.
• in identifying the constraints of the situation
• to find good decisions in highly complex and highly uncertain settings
• in assigning values to outcomes
• to model certainty using optimization techniques

ANSWER: b

• When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _____ to

develop an optimal strategy.

• utility theory b. predictive analytics

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Chapter 01 - Introduction

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• data mining d. decision analysis

ANSWER: d

• _____ assigns values to outcomes based on the decision maker’s attitude toward risk, loss, and other factors.
• Simulation optimization b. Utility theory
• Optimization model d. Data dashboard

ANSWER: b

• Which of the following best exemplifies big data?
• Five hundred Facebook users upload one thousand pictures per day.
• Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing

the Web on a daily basis.

• A local grocery store collects data from those that scan their loyalty card.
• A pharmacy keeps track of customer purchases to send its customers coupons.

ANSWER: b

• Which of the following sources of big data is not publicly available?
• Twitter
• Weather data
• Medical records
• Sports records

ANSWER: c

• Advanced analytics generally refers to _____.
• descriptive and prescriptive analytics b. simulation
• predictive and prescriptive analytics d. decision analysis

ANSWER: c

• In the financial sector, _____ are used to construct financial instruments such as derivatives.
• descriptive and prescriptive models b. predictive models
• descriptive models d. prescriptive models

ANSWER: b

• Optimization models can be used to _____.
• assess the risk of investment portfolios
• forecast future financial performance
• successfully manage commercial real estate risk
• decide on how to invest cash received from insurance policies

ANSWER: d

• Utility theory is the study of the _____ or relative desirability of a particular outcome that reflects the decision

maker’s attitude toward a collection of factors, such as profit, loss, and risk.

• total worth
• total cost
• feasibility

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