Advantages of Mathematical Models in Decision Making

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Questions and Answers

What is the main repository of data available to develop a business intelligence analysis in current business intelligence architectures?

  • Company data warehouse (correct)
  • Knowledge management
  • Model management module
  • Data mart

Which module in a DSS provides end users with mathematical models derived from operations research, statistics, and financial analysis?

  • Interface module
  • External data
  • Standard models
  • Model management (correct)

What role does the data mart typically play in most applications?

  • Connected with a company data warehouse
  • Main repository of data (correct)
  • Collection of mathematical models
  • Provides ad hoc models

What type of models are provided by the model management module in a DSS?

<p>Simple statistical models (A)</p> Signup and view all the answers

Which function of current spreadsheets is similar to the role of the model management module in a DSS?

<p>Simple optimization models (B)</p> Signup and view all the answers

How does the model management module assist knowledge workers in a DSS?

<p>By offering ad hoc model development using high-level languages (B)</p> Signup and view all the answers

What should a decision abide by, in addition to being compliant with the law?

<p>Ethical principles and social rules of the community (B)</p> Signup and view all the answers

In the decision-making process, what is done during the exclusion stage?

<p>Applying compatibility rules and restrictions to identified alternative actions (B)</p> Signup and view all the answers

What is the main purpose of evaluating feasible alternatives?

<p>To identify the preferred decision based on performance criteria (A)</p> Signup and view all the answers

Why may a decision be unworkable despite being ideal from economic, legal, and social standpoints?

<p>Due to cultural limitations of the organization (D)</p> Signup and view all the answers

What should a decision maker assess in relation to a specific decision besides economic, legal, and social factors?

<p>Political consequences among individuals, departments, and organizations (D)</p> Signup and view all the answers

What major methodological reference was proposed in the early 1960s regarding the decision-making process?

<p>A compelling representation (D)</p> Signup and view all the answers

What is one advantage of adopting mathematical models in the decision-making process?

<p>Forces decision makers to focus on the main features of the domain (D)</p> Signup and view all the answers

How does building a mathematical model contribute to knowledge preservation within an organization?

<p>It allows for easier transfer of knowledge to others in the organization (C)</p> Signup and view all the answers

Why is a mathematical model developed for a specific task considered general and flexible?

<p>It can often be applied to solve problems of a similar type in different situations (B)</p> Signup and view all the answers

In a business intelligence system architecture, what is the primary task related to data sources?

<p>Gathering and integrating data from various primary and secondary sources (C)</p> Signup and view all the answers

What is one of the techniques mentioned for achieving data integration in a data warehouse?

<p>Using uniform encoding methods (C)</p> Signup and view all the answers

How does the correction of data in a data warehouse affect business intelligence systems?

<p>Increases the practical value (C)</p> Signup and view all the answers

What type of data sources are typically included in a business intelligence system architecture?

<p>Data from operational systems and unstructured documents like emails (B)</p> Signup and view all the answers

Why are complex queries for OLAP analyses directed to the data warehouse and not operational systems?

<p>To maintain efficiency in enterprise resource planning applications (D)</p> Signup and view all the answers

How does the adoption of mathematical models enhance knowledge transfer within an organization?

<p>By allowing for easier transfer of domain knowledge to other individuals (A)</p> Signup and view all the answers

What is a primary benefit of physically separating the data warehouse from operational systems?

<p>Protects operational systems from 'killer' queries (A)</p> Signup and view all the answers

Why is extending the time span of data important in a data warehouse?

<p>To have historical records available for analysis (B)</p> Signup and view all the answers

What role does semantic homogeneity play in data integration within a data warehouse?

<p>Ensures consistency in information interpretation (B)</p> Signup and view all the answers

Where does data from back-office systems usually originate?

<p>Basic transactional records like orders and invoices (D)</p> Signup and view all the answers

Which type of system is responsible for data originating from call-center activities and customer assistance?

<p>Front-office systems (D)</p> Signup and view all the answers

What do geographic information systems (GIS) provide as a significant source of external data?

<p>Latitude and longitude coordinates (C)</p> Signup and view all the answers

Which type of data might one expect to find in front-office systems?

<p>Website visit data (A)</p> Signup and view all the answers

What kind of data do external sources like agencies provide to extend internal databases?

<p>Market surveys and consumer opinions (C)</p> Signup and view all the answers

What primarily distinguishes back-office systems from front-office systems?

<p>The type of data they collect (C)</p> Signup and view all the answers

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Study Notes

Data Repositories and Business Intelligence Architectures

  • The primary repository of data for business intelligence analysis is the data warehouse.

Decision Support Systems (DSS)

  • The model management module in a DSS provides end-users with mathematical models derived from operations research, statistics, and financial analysis.
  • The model management module assists knowledge workers in a DSS by enabling them to build, store, and manage mathematical models.

Decision-Making Process

  • A decision should abide by ethical standards, in addition to being compliant with the law.
  • During the exclusion stage, decision-makers identify and eliminate unsuitable options.
  • The main purpose of evaluating feasible alternatives is to select the best option.
  • A decision may be unworkable despite being ideal from economic, legal, and social standpoints due to feasibility issues.
  • A decision maker should assess the decision's impact on the organization, besides economic, legal, and social factors.
  • The major methodological reference proposed in the early 1960s regarding the decision-making process is the rational model.

Mathematical Models

  • One advantage of adopting mathematical models in the decision-making process is that they enhance knowledge preservation within an organization.
  • Building a mathematical model contributes to knowledge preservation by allowing knowledge workers to document and share their knowledge.

Business Intelligence Systems Architecture

  • The primary task related to data sources in a business intelligence system architecture is to integrate data from various sources.
  • Data integration techniques include data federation, ETL (Extract, Transform, Load), and data virtualization.
  • Correcting data in a data warehouse affects business intelligence systems by ensuring data quality and reliability.
  • Typical data sources in a business intelligence system architecture include OLTP (Online Transactional Processing) systems, external sources, and front-office systems.
  • Complex queries for OLAP (Online Analytical Processing) analyses are directed to the data warehouse, not operational systems, to minimize the load on operational systems.

Data Warehouse

  • Physically separating the data warehouse from operational systems enhances system performance and improves data quality.
  • Extending the time span of data in a data warehouse is important for analyzing trends and predicting future outcomes.
  • Semantic homogeneity plays a crucial role in data integration within a data warehouse by ensuring consistency in data definitions and format.

Data Sources

  • Data from back-office systems usually originates from transactional systems, such as ERP (Enterprise Resource Planning) systems.
  • Data originating from call-center activities and customer assistance comes from CRM (Customer Relationship Management) systems.
  • Geographic information systems (GIS) provide spatial data as a significant source of external data.
  • Front-office systems typically include data from sales, marketing, and customer-facing activities.
  • External sources like agencies provide demographic, economic, and environmental data to extend internal databases.
  • Back-office systems primarily focus on internal operations, whereas front-office systems focus on customer-facing activities.

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