Decision Support and Business Intelligence Systems, 9e (Turban)
Chapter 1 Decision Support Systems and Business Intelligence
1) When faced with a turbulent business environment, organizations are best able to
survive or even excel by minimizing changes until the environment stabilizes.
Answer: FALSE
Diff: 2 Page Ref: 2
2) The management of Norfolk Southern, a large freight railroad company, invested in
data warehousing technologies. Even though railroad transportation is a mature industry,
Norfolk Southern gained a competitive advantage by using its data warehousing
technologies to squeeze additional efficiency from its operations.
Answer: TRUE
Diff: 2 Page Ref: 4
3) Globalization has significantly reduced the complexity of the business environment.
For example, companies can find suppliers and customers in many countries where
materials are cheaper, which reduces competition and complexity.
Answer: FALSE
Diff: 3 Page Ref: 5
4) One of the major objectives of computerized decision support is to minimize the gap
between the current performance of an organization and its desired performance.
Answer: TRUE
Diff: 2 Page Ref: 6
5) One measure of productivity is the ratio of inputs to outputs.
Answer: FALSE
,Diff: 2 Page Ref: 7
6) Managers, especially those at high managerial levels, are primarily hands-on problem
solvers.
Answer: FALSE
Diff: 2 Page Ref: 7
7) Because managerial decision making is complex, it is more important to emphasize
methodical, analytical decision making rather than interpersonal communication skills.
Answer: TRUE
Diff: 3 Page Ref: 7
8) Government regulations, political instability, competition, and changing consumer
demands cause uncertainty that makes it difficult to predict the consequences of a
decision.
Answer: TRUE
Diff: 2 Page Ref: 8
,9) Computer applications have progressed from transaction processing and monitoring to
problem analysis and solution applications, and much of the activity is supported by
spreadsheet technologies.
Answer: FALSE
Diff: 2 Page Ref: 9
10) Computerized systems enable people to overcome their cognitive limits by quickly
accessing and processing vast amounts of stored information.
Answer: TRUE
Diff: 2 Page Ref: 10
11) Accounts receivable and accounts payable processes are highly structured, which
makes them easy to program.
Answer: TRUE
Diff: 2 Page Ref: 11
12) Research and development (R & D) planning and social responsibility planning are
unstructured decisions, which cannot be supported by computerized decision support
systems.
Answer: FALSE
Diff: 3 Page Ref: 11
13) The first phase in the decision-making process is design which involves inventing,
developing, and analyzing possible alternative courses of action or solutions.
Answer: FALSE
Diff: 2 Page Ref: 12
14) Automated decision systems (ADS) are rule-based systems that provide solutions to
repetitive managerial problems, usually in one functional area (e.g., finance,
, manufacturing).
Answer: TRUE
Diff: 3 Page Ref: 14
15) The term Decision Support Systems (DSS) can be used as an umbrella term to
describe any computerized system that supports decision making in an organization.
Answer: FALSE
Diff: 1 Page Ref: 16
16) The two major DSS types are the model-oriented DSS, in which quantitative models
are used to generate a recommended solution to a problem, and data-oriented DSS, which
support ad hoc reporting and queries.
Answer: TRUE
Diff: 2 Page Ref: 17
17) A BI system has three major components: a data warehouse with source data;
business performance management (BPM) for monitoring and analyzing performance;
and a user interface such as a dashboard.
Answer: FALSE
Diff: 2 Page Ref: 20
18) Most DSS are constructed to directly support specific decision making. In contrast,
BI systems, in general typically provide accurate and timely information to support
decision support indirectly. This difference is diminishing because decision support tools
are being added to BI software packages.
Answer: TRUE
Diff: 3 Page Ref: 24
19) Dashboards and information portals are data visualization tools.
Chapter 1 Decision Support Systems and Business Intelligence
1) When faced with a turbulent business environment, organizations are best able to
survive or even excel by minimizing changes until the environment stabilizes.
Answer: FALSE
Diff: 2 Page Ref: 2
2) The management of Norfolk Southern, a large freight railroad company, invested in
data warehousing technologies. Even though railroad transportation is a mature industry,
Norfolk Southern gained a competitive advantage by using its data warehousing
technologies to squeeze additional efficiency from its operations.
Answer: TRUE
Diff: 2 Page Ref: 4
3) Globalization has significantly reduced the complexity of the business environment.
For example, companies can find suppliers and customers in many countries where
materials are cheaper, which reduces competition and complexity.
Answer: FALSE
Diff: 3 Page Ref: 5
4) One of the major objectives of computerized decision support is to minimize the gap
between the current performance of an organization and its desired performance.
Answer: TRUE
Diff: 2 Page Ref: 6
5) One measure of productivity is the ratio of inputs to outputs.
Answer: FALSE
,Diff: 2 Page Ref: 7
6) Managers, especially those at high managerial levels, are primarily hands-on problem
solvers.
Answer: FALSE
Diff: 2 Page Ref: 7
7) Because managerial decision making is complex, it is more important to emphasize
methodical, analytical decision making rather than interpersonal communication skills.
Answer: TRUE
Diff: 3 Page Ref: 7
8) Government regulations, political instability, competition, and changing consumer
demands cause uncertainty that makes it difficult to predict the consequences of a
decision.
Answer: TRUE
Diff: 2 Page Ref: 8
,9) Computer applications have progressed from transaction processing and monitoring to
problem analysis and solution applications, and much of the activity is supported by
spreadsheet technologies.
Answer: FALSE
Diff: 2 Page Ref: 9
10) Computerized systems enable people to overcome their cognitive limits by quickly
accessing and processing vast amounts of stored information.
Answer: TRUE
Diff: 2 Page Ref: 10
11) Accounts receivable and accounts payable processes are highly structured, which
makes them easy to program.
Answer: TRUE
Diff: 2 Page Ref: 11
12) Research and development (R & D) planning and social responsibility planning are
unstructured decisions, which cannot be supported by computerized decision support
systems.
Answer: FALSE
Diff: 3 Page Ref: 11
13) The first phase in the decision-making process is design which involves inventing,
developing, and analyzing possible alternative courses of action or solutions.
Answer: FALSE
Diff: 2 Page Ref: 12
14) Automated decision systems (ADS) are rule-based systems that provide solutions to
repetitive managerial problems, usually in one functional area (e.g., finance,
, manufacturing).
Answer: TRUE
Diff: 3 Page Ref: 14
15) The term Decision Support Systems (DSS) can be used as an umbrella term to
describe any computerized system that supports decision making in an organization.
Answer: FALSE
Diff: 1 Page Ref: 16
16) The two major DSS types are the model-oriented DSS, in which quantitative models
are used to generate a recommended solution to a problem, and data-oriented DSS, which
support ad hoc reporting and queries.
Answer: TRUE
Diff: 2 Page Ref: 17
17) A BI system has three major components: a data warehouse with source data;
business performance management (BPM) for monitoring and analyzing performance;
and a user interface such as a dashboard.
Answer: FALSE
Diff: 2 Page Ref: 20
18) Most DSS are constructed to directly support specific decision making. In contrast,
BI systems, in general typically provide accurate and timely information to support
decision support indirectly. This difference is diminishing because decision support tools
are being added to BI software packages.
Answer: TRUE
Diff: 3 Page Ref: 24
19) Dashboards and information portals are data visualization tools.
