Test Bank For Essentials of Business Analytics 1st Edition by Jeffrey D. Camm

,Chapter 1: Introduction

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

Answer: C
Difficulty: Easy
LO: 1.1, Page 4
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: Strategic decisions involve higher-level issues concerned with the overall direction
of the organization.

2. Tactical decisions define:
a. the day-to-day activities of the organization.
b. the goals and plans of the organization.
c. the domain of operations managers, who are close to the customer.
d. the steps taken to achieve the goals and objectives.

Answer: D
Difficulty: Medium
LO: 1.1, Page 4
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: Tactical decisions concern how the organization should achieve the goals and
objectives set by its strategy.

3. 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
Difficulty: Medium
LO: 1.1, Page 4
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: Strategic decisions involve higher-level issues concerned with the overall direction
of the organization; these decisions define the organization’s overall goals and aspirations

, for the future. Strategic decisions are usually the domain of higher-level executives and have
a time horizon of three to five years.

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

Answer: B
Difficulty: Medium
LO: 1.2, Page 5
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: Step 1 of decision making, identifying and defining the problem, is the most
critical. Only if the problem is well-defined, with clear metrics of success or failure (step 2),
can a proper approach for solving the problem (steps 3 and 4) be devised. Decision making
concludes with the choice of an alternative (step 5).

5. Firms guided by data-driven decision making have
a. higher market value.
b. lower productivity.
c. higher risk.
d. lower profit.

Answer: A
Difficulty: Medium
LO: 1.2, Page 5
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: Firms guided by data-driven decision making have higher productivity and market
value and increased output and profitability.

6. ______ encompasses reports, data dashboards, and descriptive statistics to describe the
past data.
a. Predictive analytics
b. Descriptive analytics
c. Prescriptive analytics
d. Decision analysis

Answer: B
Difficulty: Easy
LO: 1.3, Page 5
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:

, Feedback: Descriptive analytics encompasses the set of techniques that describes what has
happened in the past.

7. Information on the number of shipments, how much was included in each shipment, the
date each shipment was sent, and so on extracted from the manufacturing plant’s database
refers to ______.
a. spreadsheet models
b. data dashboards
c. data mining
d. data query

Answer: D
Difficulty: Medium
LO: 1.3, Page 6
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: A data query is a request for information with certain characteristics from a
database.

8. Corporate-level managers use ______ to summarize sales by region, current inventory
levels, and other company-wide metrics all in a single screen.
a. simulation
b. crosstabulation
c. data dashboards
d. tables

Answer: C
Difficulty: Medium
LO: 1.3, Page 6
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC:
Feedback: For corporate-level managers, daily data dashboards might summarize sales by
region, current inventory levels, and other company-wide metrics.

9. ______ helps in constructing a mathematical model to predict the future sales, based on
past data.
a. Predictive analytics
b. Decision analysis
c. Prescriptive analytics
d. Descriptive analytics

Answer: A
Difficulty: Easy
LO: 1.3, Page 6
Bloom’s: Knowledge
BUSPROG: Analytic Skills
DISC: