Information Management Systems: Managing the Digital Firm, 11e (Laudon/Laudon) Chapter 6 Foundations of Business Intelligence: Databases and Information Management 1) A grouping of characters into a word, a group of words, or a complete number is called a record. Answer: FALSE Diff: 1 Page Ref: 210 AACSB: Use of information technology CASE: Content Objective: 6.3 2) Each characteristic or quality describing a particular entity is called an attribute. Answer: TRUE Diff: 1 Page Ref: 210 AACSB: Use of information technology CASE: Content Objective: 6.3 3) Program-data dependence refers to the coupling of data stored in files and software programs that use this data such that changes in programs require changes to the data. Answer: TRUE Diff: 2 Page Ref: 211 AACSB: Use of information technology CASE: Content Objective: 6.1 4) A DBMS separates the logical and physical views of the data. Answer: TRUE Diff: 2 Page Ref: 212 AACSB: Use of information technology CASE: Content Objective: 6.1 5) Every record in a file should contain at least one key field. Answer: TRUE Diff: 1 Page Ref: 214 AACSB: Use of information technology CASE: Content Objective: 6.3 6) Many applications today require databases that can store and retrieve multimedia. Answer: TRUE Diff: 1 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.2
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7) One of the drawbacks to OODBMS are that they cannot work with applets. Answer: FALSE Diff: 2 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.2 8) OODBMS are slower than relational DBMS. Answer: TRUE Diff: 2 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.2 9) A data dictionary is a language associated with a database management system that end users and programmers use to manipulate data in the database. Answer: FALSE Diff: 1 Page Ref: 217 AACSB: Use of information technology CASE: Content Objective: 6.2 10) In a relational database, complex groupings of data must be streamlined to eliminate awkward many-to-many relationships. Answer: TRUE Diff: 1 Page Ref: 219 AACSB: Use of information technology CASE: Content Objective: 6.3 11) A data warehouse may be updated by a legacy system. Answer: TRUE Diff: 1 Page Ref: 223 AACSB: Use of information technology CASE: Content Objective: 6.4 12) A data warehouse is typically comprised of several smaller data marts. Answer: FALSE Diff: 2 Page Ref: 225 AACSB: Use of information technology CASE: Content Objective: 6.4
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13) OLAP is a key tool of BI. Answer: TRUE Diff: 2 Page Ref: 226 AACSB: Use of information technology CASE: Content Objective: 6.4 14) OLAP enables users to obtain online answers to ad-hoc questions in a fairly rapid amount of time, except when the data are stored in very large databases. Answer: FALSE Diff: 2 Page Ref: 226-227 AACSB: Use of information technology CASE: Content Objective: 6.4 15) Predictive analysis is synonymous with data mining. Answer: FALSE Diff: 3 Page Ref: 229 AACSB: Use of information technology CASE: Content Objective: 6.4 16) In a Web-based database, middleware is used to transfer information from the organization's internal database back to the Web server for delivery in the form of a Web page to the user. Answer: TRUE Diff: 2 Page Ref: 230 AACSB: Use of information technology CASE: Content Objective: 6.4 17) A Web interface requires changes to the internal database. Answer: FALSE Diff: 1 Page Ref: 231 AACSB: Use of information technology CASE: Content Objective: 6.4 18) Common Gateway Interface is a specification for processing data on a Web server. Answer: TRUE Diff: 2 Page Ref: 231 AACSB: Use of information technology CASE: Content Objective: 6.4
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19) Data administration is a special organizational function that manages the policies and procedures through which data can be managed as an organizational resource. Answer: TRUE Diff: 2 Page Ref: 233 AACSB: Use of information technology CASE: Content Objective: 6.5 20) Data cleansing is the same process as data scrubbing. Answer: TRUE Diff: 1 Page Ref: 234 AACSB: Use of information technology CASE: Content Objective: 6.5 21) Which of the following is NOT one of the main problems with a traditional file environment? A) data inconsistency B) program-data independence C) lack of flexibility in creating ad-hoc reports D) poor security Answer: B Diff: 2 Page Ref: 211-212 AACSB: Use of information technology CASE: Analysis Objective: 6.1 22) A DBMS reduces data redundancy and inconsistency by A) enforcing referential integrity. B) uncoupling program and data. C) utilizing a data dictionary. D) minimizing isolated files with repeated data. Answer: D Diff: 3 Page Ref: 213 AACSB: Use of information technology CASE: Content Objective: 6.1
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23) Which of the following best illustrates the relationship between entities and attributes? A) the entity CUSTOMER with the attribute PRODUCT B) the entity CUSTOMER with the attribute PURCHASE C) the entity PRODUCT with the attribute PURCHASE D) the entity PRODUCT with the attribute CUSTOMER Answer: B Diff: 3 Page Ref: 210 AACSB: Analytic skills CASE: Analysis Objective: 6.3 24) A characteristic or quality describing an entity is called a(n) A) field. B) tuple. C) key field. D) attribute. Answer: D Diff: 1 Page Ref: 210 AACSB: Use of information technology CASE: Content Objective: 6.3 25) Which of the following non-digital data storage items is most similar to a database? A) library card catalog. B) cash register receipt. C) doctor's office invoice. D) list of sales totals on a spreadsheet. Answer: A Diff: 2 Page Ref: 210-211 AACSB: Analytic skills CASE: Analysis Objective: 6.1 26) The confusion created by ________ makes it difficult for companies to create customer relationship management, supply chain management, or enterprise systems that integrate data from different sources. A) batch processing B) data redundancy C) data independence D) online processing Answer: B Diff: 1 Page Ref: 211 AACSB: Use of information technology CASE: Content Objective: 6.1
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27) Duplicate data in multiple data files is called data ________. A) redundancy B) repetition C) independence D) partitions Answer: A Diff: 1 Page Ref: 211 AACSB: Use of information technology CASE: Content Objective: 6.1 28) A DBMS makes the A) physical database available for different logical views. B) logical database available for different analytical views. C) physical database available for different analytical views. D) relational database available for different physical views. Answer: A Diff: 2 Page Ref: 212 AACSB: Use of information technology CASE: Content Objective: 6.2 29) The logical view A) shows how data are organized and structured on the storage media. B) presents an entry screen to the user. C) allows the creation of supplementary reports. D) presents data as they would be perceived by end users. Answer: D Diff: 2 Page Ref: 212 AACSB: Use of information technology CASE: Content Objective: 6.2 30) DBMS for midrange computers include all of the following EXCEPT A) DB2. B) Oracle. C) Microsoft SQL Server. D) Microsoft Access. Answer: D Diff: 3 Page Ref: 213 AACSB: Use of information technology CASE: Content Objective: 6.2
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31) The type of logical database model that treats data as if they were stored in two-dimensional tables is the A) OODBMS. B) pre-digital DBMS. C) relational DBMS. D) hierarchical DBMS. Answer: C Diff: 1 Page Ref: 213 AACSB: Use of information technology CASE: Content Objective: 6.2 32) Oracle Database Lite is a(n) A) DBMS for small handheld computing devices. B) Internet DBMS. C) mainframe relational DBMS. D) DBMS for midrange computers. Answer: A Diff: 3 Page Ref: 213 AACSB: Use of information technology CASE: Content Objective: 6.2 33) Microsoft SQL Server is a(n) A) DBMS for small handheld computing devices. B) Internet DBMS. C) desktop relational DBMS. D) DBMS for midrange computers. Answer: D Diff: 3 Page Ref: 213 AACSB: Use of information technology CASE: Content Objective: 6.2 34) In a table for customers, the information about a single customer would reside in a single A) field. B) row. C) column. D) table. Answer: B Diff: 1 Page Ref: 214 AACSB: Use of information technology CASE: Content Objective: 6.3
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35) In a relational database, a record is referred to in technical terms as a(n) A) tuple. B) row. C) entity. D) field. Answer: A Diff: 2 Page Ref: 214 AACSB: Use of information technology CASE: Content Objective: 6.3 36) A field identified in a table as holding the unique identifier of the table's records is called the A) primary key. B) key field. C) primary field. D) unique ID. Answer: A Diff: 2 Page Ref: 214 AACSB: Use of information technology CASE: Content Objective: 6.3 37) A field identified in a record as holding the unique identifier for that record is called the A) primary key. B) key field. C) primary field. D) unique ID. Answer: B Diff: 2 Page Ref: 214 AACSB: Use of information technology CASE: Content Objective: 6.3 38) In a relational database, the three basic operations used to develop useful sets of data are A) select, project, and where. B) select, join, and where. C) select, project, and join. D) select, from, and join. Answer: C Diff: 2 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.3
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39) The select operation A) combines relational tables to provide the user with more information than is otherwise available. B) creates a subset consisting of columns in a table. C) identifies the table from which the columns will be selected. D) creates a subset consisting of all records in the file that meet stated criteria. Answer: D Diff: 1 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.3 40) The join operation A) combines relational tables to provide the user with more information than is otherwise available. B) identifies the table from which the columns will be selected. C) creates a subset consisting of columns in a table. D) organizes elements into segments. Answer: A Diff: 1 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.3 41) The project operation A) combines relational tables to provide the user with more information than is otherwise available. B) creates a subset consisting of columns in a table. C) organizes elements into segments. D) identifies the table from which the columns will be selected. Answer: B Diff: 1 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.3 42) Which of the following database types is useful for storing java applets as well as processing large numbers of transactions? A) relational DBMS B) hierarchical DBMS C) object-relational DBMS D) OODBMS Answer: C Diff: 2 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.3
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43) The type of database management approach that can handle multimedia is the A) hierarchical DBMS. B) relational DBMS. C) network DBMS. D) object-oriented DBMS. Answer: D Diff: 1 Page Ref: 215 AACSB: Use of information technology CASE: Content Objective: 6.3 44) The data dictionary serves as an important data management tool by A) assigning attributes to the data. B) creating an inventory of data contained in the database. C) presenting data as end users or business specialists would perceive them. D) maintaining data in updated form. Answer: B Diff: 2 Page Ref: 217 AACSB: Use of information technology CASE: Content Objective: 6.2 45) An automated or manual file that stores information about data elements and data characteristics such as usage, physical representation, ownership, authorization, and security is the A) data dictionary. B) data definition diagram. C) entity-relationship diagram. D) relationship dictionary. Answer: A Diff: 2 Page Ref: 217 AACSB: Use of information technology CASE: Content Objective: 6.2 46) The specialized language programmers use to add and change data in the database is called A) a data access language. B) a data manipulation language. C) structured Query language. D) a data definition language. Answer: B Diff: 1 Page Ref: 217 AACSB: Use of information technology CASE: Content Objective: 6.2
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47) The most prominent data manipulation language today is A) Access. B) DB2. C) SQL. D) Crystal Reports. Answer: C Diff: 2 Page Ref: 217 AACSB: Use of information technology CASE: Content Objective: 6.2 48) DBMSs typically include report-generating tools in order to A) retrieve and display data. B) display data in an easier-to-read format. C) display data in graphs. D) perform predictive analysis. Answer: B Diff: 2 Page Ref: 219 AACSB: Use of information technology CASE: Content Objective: 6.1 49) The process of streamlining data to minimize redundancy and awkward many-to-many relationships is called A) normalization. B) data scrubbing. C) data cleansing. D) data defining. Answer: A Diff: 1 Page Ref: 219 AACSB: Use of information technology CASE: Content Objective: 6.3 50) A schematic of the entire database that describes the relationships in a database is called a(n) A) data dictionary. B) intersection relationship diagram. C) entity-relationship diagram. D) data definition diagram. Answer: C Diff: 2 Page Ref: 220 AACSB: Use of information technology CASE: Content Objective: 6.3
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51) A one-to-one relationship between two entities is symbolized in a diagram by a line that ends with A) two short marks. B) one short mark. C) a crow's foot. D) a crow's foot topped by a short mark. Answer: A Diff: 3 Page Ref: 220 AACSB: Use of information technology CASE: Content Objective: 6.3 52) A one-to-many relationship between two entities is symbolized in a diagram by a line that ends with A) two short marks. B) one short mark. C) a crow's foot. D) a crow's foot topped by a short mark. Answer: D Diff: 3 Page Ref: 220 AACSB: Use of information technology CASE: Content Objective: 6.3 53) In what type of a database system is the entire central database duplicated at all remote locations? A) partitioned B) normalized C) replicated D) networked Answer: C Diff: 2 Page Ref: 221 AACSB: Use of information technology CASE: Content Objective: 6.3 54) Which of the following is a main disadvantage to a distributed database system? A) lack of flexibility B) susceptibility to data inconsistency C) poor responsiveness to local users D) requires more expensive computers Answer: B Diff: 2 Page Ref: 222 AACSB: Use of information technology CASE: Content Objective: 6.3
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55) A data warehouse is composed of A) historical data from legacy systems. B) current data. C) internal and external data sources. D) historic and current internal data. Answer: D Diff: 2 Page Ref: 223 AACSB: Use of information technology CASE: Content Objective: 6.4 56) A data mart usually can be constructed more rapidly and at lower cost than a data warehouse because A) a data mart typically focuses on a single subject area or line of business. B) all the information is historical. C) a data mart uses a Web interface. D) all of the information belongs to a single company. Answer: A Diff: 1 Page Ref: 225 AACSB: Use of information technology CASE: Content Objective: 6.4 Tools 57) for consolidating, analyzing, and providing access to vast amounts of data to help users make better business decisions are known as A) DSS. B) business intelligence. C) OLAP. D) data mining. Answer: B Diff: 2 Page Ref: 226 AACSB: Use of information technology CASE: Content Objective: 6.4 58) The tool that enables users to view the same data in different ways using multiple dimensions is A) predictive analysis. B) SQL. C) OLAP. D) data mining. Answer: C Diff: 3 Page Ref: 226 AACSB: Use of information technology CASE: Content Objective: 6.4
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59) OLAP is a tool for enabling A) users to obtain online answers to ad-hoc questions in a rapid amount of time. B) users to view both logical and physical views of data. C) programmers to quickly diagram data relationships. D) programmers to normalize data. Answer: A Diff: 1 Page Ref: 226-227 AACSB: Use of information technology CASE: Content Objective: 6.4 60) Data mining is a tool for allowing users to A) quickly compare transaction data gathered over many years. B) find hidden relationships in data. C) obtain online answers to ad hoc questions in a rapid amount of time. D) summarize massive amounts of data into much smaller, traditional reports. Answer: B Diff: 2 Page Ref: 228 AACSB: Use of information technology CASE: Content Objective: 6.4 61) In terms of data relationships, associations refers to A) events linked over time. B) patterns that describe a group to which an item belongs. C) occurrences linked to a single event. D) undiscovered groupings. Answer: C Diff: 3 Page Ref: 228 AACSB: Use of information technology CASE: Content Objective: 6.4 62) ________ tools are used to analyze large unstructured data sets, such as e-mail, memos, survey responses, etc., to discover patterns and relationships. A) OLAP B) Text mining C) Web mining D) Web content mining Answer: B Diff: 2 Page Ref: 229 AACSB: Use of information technology CASE: Content Objective: 6.4
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63) An alternative to using application server software for interfacing between a Web server and back-end databases is A) CGI. B) HTML. C) Java. D) SQL. Answer: A Diff: 1 Page Ref: 230-231 AACSB: Use of information technology CASE: Content Objective: 6.4 64) The organization's rules for sharing, disseminating, acquiring, standardizing, classifying, and inventorying information is called a(n) A) information policy. B) data definition file. C) data quality audit. D) data governance policy. Answer: A Diff: 2 Page Ref: 231 AACSB: Use of information technology CASE: Content Objective: 6.5 65) The special organizational function whose responsibilities include the technical and operational aspects of managing data, including physical database design and maintenance, is called A) data administration. B) database administration. C) information policy administration. D) data auditing. Answer: B Diff: 1 Page Ref: 233 AACSB: Use of information technology CASE: Content Objective: 6.5
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66) Which common database challenge is illustrated by the text's discussion of receiving multiple pieces of the same direct mail advertising? A) data normalization B) data accuracy C) data redundancy D) data inconsistency Answer: D Diff: 3 Page Ref: 234 AACSB: Use of information technology CASE: Analysis Objective: 6.5 67) Detecting and correcting data in a database or file that are incorrect, incomplete, improperly formatted, or redundant is called A) data auditing. B) defragmentation. C) data scrubbing. D) data optimization. Answer: C Diff: 1 Page Ref: 234 AACSB: Use of information technology CASE: Content Objective: 6.5 68) As discussed in the Interactive Session: Technology, what problem was MySpace facing in its data management? A) program-data dependence B) data redundancy C) scalability D) data quality Answer: C Diff: 3 Page Ref: 232 AACSB: Use of information technology CASE: Content Objective: 6.5 69) Data cleansing not only corrects errors but also A) establishes logical relationships between data. B) structures data. C) normalizes data. D) enforces consistency among different sets of data. Answer: D Diff: 2 Page Ref: 234 AACSB: Use of information technology CASE: Content Objective: 6.5
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70) Which of the following is NOT a method for performing a data quality audit? A) surveying entire data files B) surveying samples from data files C) surveying data definition and query files D) surveying end users about their perceptions of data quality Answer: C Diff: 3 Page Ref: 234 AACSB: Analytic skills CASE: Analysis Objective: 6.5 71) Databases record information about general categories of information referred to as ________. Answer: entities Diff: 1 Page Ref: 210 AACSB: Use of information technology CASE: Content Objective: 6.1 72) Data ________ describes a situation in which the same attribute of a data entity may have different values. Answer: inconsistency Diff: 2 Page Ref: 211 AACSB: Use of information technology CASE: Content Objective: 6.1 73) A(n) ________ view shows data as it is actually organized and structured on the data storage media. Answer: physical Diff: 1 Page Ref: 212 AACSB: Use of information technology CASE: Content Objective: 6.1 74) DBMS have a(n) ________ capability to specify the structure of the content of the database. Answer: data definition Diff: 2 Page Ref: 217 AACSB: Use of information technology CASE: Content Objective: 6.2
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75) RDBMSs use ________ rules to ensure that relationships between coupled tables remain consistent. Answer: referential integrity Diff: 3 Page Ref: 220 AACSB: Use of information technology CASE: Content Objective: 6.2 76) A(n) ________ database is one that is stored in more than one physical location. Answer: distributed Diff: 2 Page Ref: 221 AACSB: Use of information technology CASE: Content Objective: 6.3 77) In ________, a data mining tool discovers different groupings within data, such as finding affinity groups for bank cards. Answer: clustering Diff: 2 Page Ref: 228 AACSB: Use of information technology CASE: Content Objective: 6.4 78) The discovery and analysis of useful patterns and information from hypertext documents on the Internet is called ________. Answer: Web mining Diff: 2 Page Ref: 229 AACSB: Use of information technology CASE: Content Objective: 6.4 79) A(n) ________ is software that handles all application operations between browser-based computers and a company's back-end business applications or databases. Answer: application server Diff: 1 Page Ref: 230 AACSB: Use of information technology CASE: Content Objective: 6.4 80) ________ are the formal rules governing the maintenance, distribution, and use of information in an organization. Answer: Information policies Diff: 2 Page Ref: 231 AACSB: Use of information technology CASE: Content Objective: 6.5
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81) The small publishing company you work for wants to create a new database for storing information about all of their author contracts. What factors will influence how you design the database? Answer: Student answers will vary, but should include some assessment of data quality; business processes and user needs; and relationship to existing IT systems. Key points to include are: Data accuracy when the new data is input, establishing a good data model, determining which data is important and anticipating what the possible uses for the data will be, beyond looking up contract information, technical difficulties linking this system to existing systems, new business processes for data input and handling, and contracts management, determining how end users will use the data, making data definitions consistent with other databases, what methods to use to cleanse the data. Diff: 2 Page Ref: 231-234 AACSB: Analytic skills CASE: Synthesis Objective: 6.5 82) When you design the new contracts database for the publishing house mentioned above, what fields do you anticipate needing? Which of these fields might be in use in other databases used by the company? Answer: Author first name, author last name, author address, agent name and address, title of book, book ISBN, date of contract, amount of money, payment schedule, date contract ends. Other databases might be an author database (author names, address, and agent details), a book title database (title and ISBN of book), and financial database (payments made). Diff: 2 Page Ref: 209-210, 213-215 AACSB: Analytic skills CASE: Synthesis Objective: 6.1 83) List at least three conditions that contribute to data redundancy and inconsistency. Answer: Data redundancy occurs when different divisions, functional areas, and groups in an organization independently collect the same piece of information. Because it is collected and maintained in so many different places, the same data item may have: (1) different meanings in different parts of the organization, (2) different names may be used for the same item, and (3) different descriptions for the same condition. In addition, the fields into which the data is gathered may have different field names, different attributes, or different constraints. Diff: 2 Page Ref: 211 AACSB: Analytic skills CASE: Analysis Objective: 6.1
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84) List and describe three main capabilities or tools of a DBMS. Answer: A data definition capability to specify the structure of the content of the database. This capability would be used to create database tables and to define the characteristics of the fields in each table. A data dictionary to store definitions of data elements in the database and their characteristics. In large corporate databases, the data dictionary may capture additional information, such as usage; ownership; authorization; security; and the individuals, business functions, programs, and reports that use each data element. A data manipulation language, such as SQL, that is used to add, change, delete, and retrieve the data in the database. This language contains commands that permit end users and programming specialists to extract data from the database to satisfy information requests and develop applications. Diff: 2 Page Ref: 216-217 AACSB: Analytic skills CASE: Analysis Objective: 6.2 85) What types of relationships are possible in a relational database? Describe and give an example of each. Answer: A one-to-one relationship occurs when each record in one table has only one related record in a second table. An example might be a table of salespeople and a separate table of company cars. Each salesperson can only have one car, or be related to the one car in the database. A one-to-many relationship occurs when a record in one table has many related records in a second table. An example might be a table of salespeople and clients. Each salesperson may have several clients. A many-to-many relationship occurs when records in one table have many related records in a second table, and the records in the second table have many related records in the first table. An example might be a clients table and a products table. Clients may buy more than one product, and products are sold to more than one client. Diff: 3 Page Ref: 219-220 AACSB: Use of information technology CASE: Synthesis Objective: 6.2 86) Identify and describe three basic operations used to extract useful sets of data from a relational database. Answer: The select operation creates a subset consisting of all records (rows) in the table that meets stated criteria. The join operation combines relational tables to provide the user with more information than is available in individual tables. The project operation creates a subset consisting of columns in a table, permitting the user to create new tables that contain only the information required. Diff: 2 Page Ref: 215 AACSB: Use of information technology CASE: Analysis Objective: 6.2
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87) Describe the ways in which database technologies could be used by an office stationery supply company to achieve low-cost leadership. Answer: Sales databases could be used to make the supply chain more efficient and minimize warehousing and transportation costs. You can also use sales databases to determine what supplies are in demand by which customers, and whether needs are different in different geographical areas. DSS databases using business intelligence could be used to predict future trends in office supply needs, to help anticipate demand, and to determine the most efficient methods of transportation and delivery. Diff: 3 Page Ref: 213, 222-231 AACSB: Use of information technology CASE: Evaluation Objective: 6.4 88) Describe the ways in which database technologies could be used by an office stationery supply company to achieve product differentiation. Answer: Product databases could be made available to customers for greater convenience when ordering online. Databases could be used to track customer preferences and to help anticipate customer desires. Sales databases could also help a client anticipate when they would need to resupply, providing an additional service. Data mining could help anticipate trends in sales or other factors to help determine new services and products to sell to the clients. Diff: 3 Page Ref: 222-231 AACSB: Use of information technology CASE: Evaluation Objective: 6.4 89) What makes data mining an important business tool? What types of information does data mining produce? In what type of circumstance would you advise a company to use data mining? Answer: Data mining is one of the data analysis tools that helps users make better business decisions and is one of the key tools of business intelligence. Data mining allows users to analyze large amounts of data and find hidden relationships between data that otherwise would not be discovered. For example, data mining might find that a customer that buys product X is ten times more likely to buy product Y than other customers. Data mining finds information such as: Associations or occurrences that are linked to a single event. Sequences, events that are linked over time. Classification, patterns that describe the group to which an item belongs, found by examining existing items that have been classified and by inferring a set of rules. Clusters, unclassified but related groups. I would advise a company to use data mining when they are looking for new products and services, or when they are looking for new marketing techniques or new markets. Data mining might also be helpful when trying to analyze unanticipated problems with sales whose causes are difficult to identify. Diff: 3 Page Ref: 228-229 AACSB: Use of information technology CASE: Evaluation Objective: 6.4
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90) What are the differences between data mining and OLAP? When would you advise a company to use OLAP? Answer: Data mining uncovers hidden relationships and is used when you are trying to discover data and new relationships. It is used to answer questions such as: Are there any product sales that are related in time to other product sales? In contrast, OLAP is used to analyze multiple dimensions of data and is used to find answers to complex, but known, questions, such as: What were sales of a productbroken down by month and geographical region, and how did those sales compare to sales forecasts? Diff: 2 Page Ref: 226-229 AACSB: Use of information technology CASE: Evaluation Objective: 6.4
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