File: chapter12TestBank.

docx, Chapter 12, Business Intelligence, Knowledge Management, and

Analytics

Multiple Choice

1. Knowledge management is the process that generates, captures, codifies, and __________
knowledge across an organization in order to achieve a competitive advantage.
a) Analyzes
b) Transfers
c) Applies
d) Limits
e) Saves

Ans: b (Medium)

2. Which of the following allows individuals to own their creativity and innovation in a way
similar to owning physical property?
a) Intellectual property
b) Open source license agreement
c) Economies of scale
d) Intellectual capital
e) Patents

Ans: a (Medium)

3. Business analytics fuel ________ decision making.

a) social
b) fact-based
c) profit-driven
d) intuition-based
e) top-down

Ans: b (Hard)

4. Unlike other baseball teams at the time, the Oakland A’s used which of the following to
manage the team and carry themselves to the playoffs?
a) Players with lots of determination
b) Young players with the willingness to play
c) Factual data
d) High player salaries
 e) High batting averages

Ans: c (Medium)

5. In which of the following technologies can tacit knowledge be stored?

a) Artificial Intelligence (AI)
b) Personal computers
c) Data warehouses
d) Real-time data sources
e) All of the above

Ans: a (Medium)

6. Knowledge that has been identified, captured, and leveraged to produce higher-value goods or
services or some other competitive advantage for the firm is called:
f) Information
g) Intellectual capital
h) Competitive advantage data
i) Business intelligence
j) System data

Ans: b (Medium)

7. All of the following are main processes of knowledge management EXCEPT:

a) The generation of knowledge
b) The capturing of knowledge
c) The absorption of knowledge
d) The codification of knowledge
e) The transfer of knowledge

Ans: c (Medium)

8. Which of the following are collections of data designed to support management decision
making, and sometimes serve as repositories of organizational knowledge?
a) Data-marts
b) Data containers
c) Data warehouses
d) Data storage centers
e) RAID

Ans: c (Medium)
9. ________________ is hard to explain, hard to transfer, and highly personal to the source.
a) Data
b) Tacit knowledge
c) Implicit knowledge
d) Explicit knowledge
e) Information

Ans: b (Medium)

10. IS is traditionally focused on:

a) data
b) tacit knowledge
c) implicit knowledge
d) explicit knowledge
e) information

Ans: d (Medium)

11. All of the following are common elements of a BI system EXCEPT:

a) Reporting
b) Dashboards
c) Querying
d) Supply chain management
e) Scorecards

Ans: d (Medium)

12. Which of the following is the process of analyzing data warehouses for “gems.”
a) Data combing
b) Data translation
c) Data mining
d) Data searching
e) Data manipulation

Ans: c (Easy)

13. _______________ includes the movement from tacit knowledge to explicit knowledge.
a) Externalization
b) Socialization
c) Internalization
d) Combination
 e) Appropriation

Ans: a (Medium)

14. Which of the following is an ad hoc codification system that manages tags for annotating and
categorizing content?
a) Collaborative data store
b) Folksonomy
c) Data mart
d) Socio-content
e) Social Network

Ans: b (Medium)

15. All of the following are examples of socialization EXCEPT for:

a) Sharing war stories
b) Apprenticeships
c) Conferences
d) Non-structured activities, like an office party or lunch discussion
e) Project management

Ans: e (Hard)

16. Capital One found ________ in combination with business analytics to be a very low-cost
way to design and develop new products and services for customers.
a) Socialization
b) Experimentation
c) Absorption
d) Externalization
e) Globalization

Ans: b (Medium)

17. By utilizing business analytics, a company can learn which one of the following?
a) Which products are moving slowly versus which products are moving quickly
b) Which products have been sold in the past 3 months
c) Who is likely to buy the product in a given period of time
d) Where each product sits (warehouse, store or factory location)
e) The suppliers who contributed to the manufacturing of the product

Ans: c (Hard)
18. All of the following are components of business analytics EXCEPT:
a) A data repository
b) Software tools
c) Project stakeholders
d) Data driven environment
e) A skilled workforce

Ans: c (Easy)

19. This company approach is one in which facts are gathered and analyzed as the first step in
decision making.
a) Information-driven management
b) Hierarchical structure
c) Network structure
d) Evidence-based management
e) Social analytics

Ans: d (Medium)

20. Which of the following is used to describe the techniques and technology that make it
possible to deal with very large volumes of information that are created and stored for analysis.
a) Data warehouse
b) Database
c) Big data
d) Data analytics
e) Business intelligence

Ans: c (Easy)

21. To support the analytical needs of an organization, data warehouses need to be all of the
following EXCEPT:
a) Scalable
b) Compatible with the IT infrastructure
c) Agile to support changing requirements
d) Secure
e) Inaccessible

Ans: e (Medium)

22. The main types of intellectual property are all of the following EXCEPT:
a) Patent
 b) Trademarks
c) Designs
d) Data warehouse
e) Copyrights

Ans: d (Medium)

23. Who generally has the responsibility for all aspects of data, from collection to storage, usage,
and disposal?
a) CAO
b) CIO
c) CDO
d) CEO
e) CTO

Ans: c (Easy)

24. Which of the following is the way personalization of real-time data streams is accomplished?
a) Geolocation
b) Cookies
c) Algorithms
d) Online conversations
e) All of the above

Ans: e (Easy)

True/False

25. Traditionally low-tech industries have seen advances as a result of big data.

Ans: True (Easy)

26. Countries in Asia have implemented General Data Protection Regulation (GDPR) for data
protection and privacy throughout Asian.

Ans: False (Easy)

26. Companies that use big data and analytics can be helped by making information more
hidden, and making sure to avoid experimentation (which can become reckless).

Ans: False (Medium)

27. The CEO-level sponsorship of and passion for analytics enabled firms like Caesars and
Capital One to achieve the success they did.

Ans: True (Medium)

28. A company that is using statistical analysis tools to report on why something happened has
achieved a higher level of analytical maturity than a company that’s using tools to predict what
will happen next.

Ans: False (Hard)

29. “False discoveries” are a downside to the analysis of big data.

Ans: True (Medium)

30. Data is more important than knowledge.

Ans: False (Easy)

31. More human contribution goes into creating information than knowledge.

Ans: False (Medium)

32. Tacit knowledge is easy to formalize.

Ans: False (Medium)

33. Knowledge is valuable information from the human mind while information is data with
relevance and purpose

Ans: True (Medium)

34. Data is defined as simple observations of the state of the world, and it is easily captured on
machines.
Ans: True (Medium)

Short Answer

35. is the process of combing through massive amounts of data to identify

previously unknown relationships among data.

Ans: Data mining

36. Business intelligence is a more specific form of knowledge management that seeks to extract
knowledge from ______.

Ans: data

37. Researchers at the University of Arizona are able to predict asthma-related emergency room
visits with ______ percent accuracy.

Ans: 70

38. A is a tool that displays key metrics in a graphical form and has drill down
capabilities that get to the next level of detail.

Ans: Dashboard

39. Netflix is credited with accurately predicting viewer preferences, and collects detailed
information about viewer behavior. Netflix uses to gain such capabilities.

Ans: Big data and/or analytics

40. Business analytics tools are used with data in the _____________ to gain insight and support
decision making.

Ans: Data warehouse

41. are tools that analyze the impact social IT has on a business.
Ans: Social analytics or social media analytics

42. is one of the features of Google Analytics that allows an organization see
how specific search queries drive traffic to the organization’s web site.

Ans: search optimization

Essay

43. Give examples of how Netflix takes advantage of business analytics, and what benefits they
receive from doing so.

44. Explain how information-based intellectual property, such as a digital book, is different from
physical property and why it is harder to protect.

45. How has social media changed how organizations make decisions that impact customers?

46. List some examples of what a company should do if it seeks to gain a competitive advantage
from analytics.

47. Identify some of the sources of big data.

48. How can a company use social analytic tools to further their mission?

49. List the four main processes of knowledge management. Which process is the most difficult
to perform? Why?

50. Distinguish between machine learning and deep learning within Artificial Intelligence (AI).

Matching
51. Determine if the following is data, information or knowledge.

Data This is the third visit by a customer this

month.
Information A customer spends on average
$100/visit but today has only spent $20.
Knowledge A customer will stay longer in the store
and spend more if given a free sample
of something.

52. Match the attribute as belonging to data, information or knowledge.

Data Easily captured

Data Easily structured
Information Requires a unit of analysis
Knowledge Most valuable
Knowledge Hard to transfer

53. Identify the following actions as either using explicit knowledge or tacit knowledge.

Explicit knowledge Generating monthly financial reports

Explicit knowledge Installing software based on a written procedure.
Tacit knowledge Estimating the number of man hours required for a
mobile app development project.
Tacit knowledge Deciding as a consultant how to optimize a business
process for the client.

54. Match the activity with the knowledge management process it represents.

Knowledge generation Through analysis, learning that the best

customers are people 65 and older.
Knowledge capture Scanning the organization for new ways to
work efficiently.
Knowledge codification An informational document is tagged and
posted on a collaborative site for everyone to
easily access.
Transfer of knowledge A senior consultant shares her best practices
with the organization.

55. Match the business analytic tool with the question it sets out to answer.
 Statistical Analysis Why is this happening?
Forecasting/extrapolation What if these trends continue?
Predictive modeling What will happen next?
Optimization What is the best that can happen?

56. Match the level of analytical capability to its maturity level. Level 1 is the lowest level of
maturity and Level 5 is the highest level of maturity.

Level 1 Reporting
Level 2 Analyzing
Level 3 Descriptive
Level 4 Predictive
Level 5 Prescriptive

57. Match the analytical capabilities maturity level with the question it seeks to answer.

Reporting What happened?

Analyzing Why did it happen?
Predicting What will happen?
Descriptive What is happening now?
Prescriptive How should we respond?