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Questions and Answers
What does Electronic Data Processing (EDP) refer to?
The use of automated measures using computer technology to organize and store documents and transfer them from paper to digital format.
Which of the following is NOT an advantage of EDP?
EDP systems allow for instant retrieval of information.
True
What does the GIGO concept stand for?
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EDP has the ability to store large amounts of data in a _______ and easily retrievable form.
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Match the following components of EDP to their definitions:
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What is a computer?
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Power failures, computer viruses, and hackers are benefits of computerized systems.
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Study Notes
Electronic Data Processing (EDP)
- Refers to the use of automated measures using computers to organize and store documents.
- It involves processing data to produce meaningful information using computers and databases.
- Now often called "IS" (information services or systems) or "MIS" (management information services or systems).
Advantages of EDP
- Speed: Information can be retrieved almost instantly.
- Efficiency: Documents like invoices, reports, and statements can be automatically generated.
- Economic: Reduces data management costs over time.
- Reduced Labor: Reduces manual data entry errors and duplication of effort.
- Automatic Operation: Sequences of data processing operations can be executed without human intervention.
- Decision making capability: Computers can make automated decisions based on programmed instructions.
- Compact Storage: EDP systems can store large amounts of data in a compact and readily retrievable form.
- Accuracy: High-speed processing by computers leads to highly accurate results.
Disadvantages of EDP
- Vulnerability: Susceptible to power failures, computer viruses, and hacking.
- Data Accuracy: Input data needs to be validated for accuracy and completeness to avoid "Garbage In, Garbage Out" (GIGO).
- System Setup Issues: Incorrectly programmed software, inappropriate hardware, or personnel problems can cause significant problems.
- Security: Requires proper internal and external security measures to prevent computer fraud.
Components of EDP
- Hardware: The physical parts of the system, including electronic devices and peripherals.
- Software: Consists of programs and routines to make the computer usable.
- User Program: A set of instructions to perform specific operations.
- Procedure: The operational steps for preparing data, operating the computer, and distributing output.
- Personnel: Skilled personnel such as system analysts, programmers, and operators are needed.
Hardware
- A computer is an electronic device designed to work with information.
- The term "computer" typically refers to the Central Processing Unit (CPU) and internal memory.
- Computers process both numerical and non-numerical (arithmetic and logical) calculations.
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Description
This quiz covers the fundamentals of Electronic Data Processing (EDP), highlighting its advantages such as speed, efficiency, and accuracy. Learn how EDP transforms data management and decision-making in modern information systems. Explore how it streamlines operations and reduces costs.
