Test Bank for Business Analytics, 6th Edition by Jeffrey D. Camm
Chap 01 6e - Camm
Indicate the answer choice that best completes the statement or answers the question.
1. In the spectrum of business analytics, which is the most complex?
a. Descriptive
b. Predictive
c. Prescriptive
d. Operational
ANSWER: c
2. Which of the following is NOT an approach to making decisions?
a. Tradition
b. Rules of thumb
c. Intuition
d. Guess and check
ANSWER: d
3. A company analyzes customer tweets and call recordings. This demonstrates which “V” of big data?
a. Volume
b. Variety
c. Veracity
d. Velocity
ANSWER: b
4. Which of the following do corporate-level managers use to summarize sales by region, current inventory levels,
and other company-wide metrics all in a single screen?
a. Simulations
b. Cross-tabulations
c. Data dashboards
d. Tables
ANSWER: c
5. 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) _____.
a. tactical decision
b. operational decision
c. strategic decision
d. financial decision
ANSWER: c
Page 1
,Name: Class: Date:
Chap 01 6e - Camm
6. Which of the following sources of big data is NOT publicly available?
a. Twitter
b. Weather data
c. Medical records
d. Sports records
ANSWER: c
7. What is the main concern addressed by the veracity characteristic of big data?
a. The ethical use of algorithms
b. The real-time nature of streaming data
c. The uncertainty or trustworthiness of data
d. The size and scope of data
ANSWER: c
8. What ethical problem arises from using biased data in modeling?
a. Models perform faster.
b. Models reflect outdated software.
c. Models lead to unfair decisions.
d. Models become more secure.
ANSWER: c
9. A light bulb manufacturer uses descriptive analytics to _____.
a. present supply chain to managers visually
b. achieve efficiency in delivery of goods
c. schedule staff and vehicle for delivery
d. plan capacity utilization by incorporating the inherent uncertainty in commodities pricing
ANSWER: a
10. Which of the following best exemplifies big data?
a. Five hundred Facebook users upload one thousand pictures per day.
b. Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and
browsing the Web on a daily basis.
c. A local grocery store collects data from those that scan their loyalty card.
d. A pharmacy keeps track of customer purchases to send its customers coupons.
ANSWER: b
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,Name: Class: Date:
Chap 01 6e - Camm
11. 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 _____.
a. spreadsheet models
b. data dashboards
c. data mining
d. data queries
ANSWER: d
12. An airline uses simulation to evaluate pricing strategies. This is an example of _____ analytics.
a. predictive
b. descriptive
c. prescriptive
d. decision
ANSWER: c
13. Which of the following is used in the pharmaceutical industry to assess the risk of introducing a new drug?
a. Data dashboard
b. Chart
c. Spreadsheet model
d. Simulation
ANSWER: d
14. Which one of the following is used in predictive analytics?
a. Data dashboard
b. Linear regression
c. Data visualization
d. Optimization model
ANSWER: b
15. Which of the following analytical techniques helps us arrive at the best decision?
a. Predictive analytics
b. Data mining
c. Prescriptive analytics
d. Descriptive analytics
ANSWER: c
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, Name: Class: Date:
Chap 01 6e - Camm
16. Data-driven decision making tends to decrease a firm's _____.
a. market value
b. productivity
c. risk
d. profit
ANSWER: c
17. Which type of decision is concerned with how the organization should achieve the goals and objectives set by its
strategy?
a. Tactical
b. Strategic
c. Intuitive
d. Operational
ANSWER: a
18. What type of analytics uses techniques that take input data and yield a best course of action?
a. Prescriptive
b. Simulation
c. Strategic
d. Operational
ANSWER: a
19. According to INFORMS ethics, analytics professionals should _____.
a. prioritize speed over accuracy
b. withhold analysis from stakeholders
c. be objective and transparent
d. focus only on profits
ANSWER: c
20. What makes Generative AI different from traditional AI?
a. It does not require data.
b. It generates new content such as text, images, or audio.
c. It only works in manufacturing.
d. It requires manual coding for every function.
ANSWER: b
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Chap 01 6e - Camm
Indicate the answer choice that best completes the statement or answers the question.
1. In the spectrum of business analytics, which is the most complex?
a. Descriptive
b. Predictive
c. Prescriptive
d. Operational
ANSWER: c
2. Which of the following is NOT an approach to making decisions?
a. Tradition
b. Rules of thumb
c. Intuition
d. Guess and check
ANSWER: d
3. A company analyzes customer tweets and call recordings. This demonstrates which “V” of big data?
a. Volume
b. Variety
c. Veracity
d. Velocity
ANSWER: b
4. Which of the following do corporate-level managers use to summarize sales by region, current inventory levels,
and other company-wide metrics all in a single screen?
a. Simulations
b. Cross-tabulations
c. Data dashboards
d. Tables
ANSWER: c
5. 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) _____.
a. tactical decision
b. operational decision
c. strategic decision
d. financial decision
ANSWER: c
Page 1
,Name: Class: Date:
Chap 01 6e - Camm
6. Which of the following sources of big data is NOT publicly available?
a. Twitter
b. Weather data
c. Medical records
d. Sports records
ANSWER: c
7. What is the main concern addressed by the veracity characteristic of big data?
a. The ethical use of algorithms
b. The real-time nature of streaming data
c. The uncertainty or trustworthiness of data
d. The size and scope of data
ANSWER: c
8. What ethical problem arises from using biased data in modeling?
a. Models perform faster.
b. Models reflect outdated software.
c. Models lead to unfair decisions.
d. Models become more secure.
ANSWER: c
9. A light bulb manufacturer uses descriptive analytics to _____.
a. present supply chain to managers visually
b. achieve efficiency in delivery of goods
c. schedule staff and vehicle for delivery
d. plan capacity utilization by incorporating the inherent uncertainty in commodities pricing
ANSWER: a
10. Which of the following best exemplifies big data?
a. Five hundred Facebook users upload one thousand pictures per day.
b. Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and
browsing the Web on a daily basis.
c. A local grocery store collects data from those that scan their loyalty card.
d. A pharmacy keeps track of customer purchases to send its customers coupons.
ANSWER: b
Page 2
,Name: Class: Date:
Chap 01 6e - Camm
11. 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 _____.
a. spreadsheet models
b. data dashboards
c. data mining
d. data queries
ANSWER: d
12. An airline uses simulation to evaluate pricing strategies. This is an example of _____ analytics.
a. predictive
b. descriptive
c. prescriptive
d. decision
ANSWER: c
13. Which of the following is used in the pharmaceutical industry to assess the risk of introducing a new drug?
a. Data dashboard
b. Chart
c. Spreadsheet model
d. Simulation
ANSWER: d
14. Which one of the following is used in predictive analytics?
a. Data dashboard
b. Linear regression
c. Data visualization
d. Optimization model
ANSWER: b
15. Which of the following analytical techniques helps us arrive at the best decision?
a. Predictive analytics
b. Data mining
c. Prescriptive analytics
d. Descriptive analytics
ANSWER: c
Page 3
, Name: Class: Date:
Chap 01 6e - Camm
16. Data-driven decision making tends to decrease a firm's _____.
a. market value
b. productivity
c. risk
d. profit
ANSWER: c
17. Which type of decision is concerned with how the organization should achieve the goals and objectives set by its
strategy?
a. Tactical
b. Strategic
c. Intuitive
d. Operational
ANSWER: a
18. What type of analytics uses techniques that take input data and yield a best course of action?
a. Prescriptive
b. Simulation
c. Strategic
d. Operational
ANSWER: a
19. According to INFORMS ethics, analytics professionals should _____.
a. prioritize speed over accuracy
b. withhold analysis from stakeholders
c. be objective and transparent
d. focus only on profits
ANSWER: c
20. What makes Generative AI different from traditional AI?
a. It does not require data.
b. It generates new content such as text, images, or audio.
c. It only works in manufacturing.
d. It requires manual coding for every function.
ANSWER: b
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