Introduction to Information Systems Chapter 12

Questions and Answers

What are the three basic roles of a manager according to Mintzberg?

Collaborative, Supervisory, Motivational

Analytical, Communicative, Leadership

Strategic, Operational, Tactical

Interpersonal, Informational, Decisional (correct)

Which of the following best describes descriptive analytics?

It recommends actions based on data analysis.

It analyzes data to enhance ongoing processes.

It summarizes past data to understand what happened. (correct)

It forecasts future trends based on historical data.

What is one key function of business analytics in managerial decision making?

Solely focusing on historical data analysis.

Eliminating the need for technological tools.

Providing a framework to support decision-making phases. (correct)

Disregarding the importance of data governance.

Predictive analytics is best described as:

Analyzing historical data to make predictions about future outcomes. Signup and view all the answers

Which best explains an example of prescriptive analytics?

A recommendation system suggesting the best product to a customer. Signup and view all the answers

What role does technology play in the decision-making process?

Technology aids managers in analyzing data at each phase of the decision-making process. Signup and view all the answers

In the context of business analytics, which tool is primarily used for presenting analyzed data?

Spreadsheet software Signup and view all the answers

How do business analytics and business intelligence differ?

Business intelligence focuses on past data, while business analytics predicts future trends. Signup and view all the answers

What is the primary purpose of business analytics (BA)?

To examine historical data for actionable insights Signup and view all the answers

Which of the following is NOT an analytics target in the business analytics process?

Implementing data collection methodologies Signup and view all the answers

Which tool is specifically associated with descriptive analytics?

OLAP (Online Analytical Processing) Signup and view all the answers

What does descriptive analytics primarily focus on?

Summarizing historical actions Signup and view all the answers

Which of the following is a business analytics tool used for decision support?

Goal-Seeking analysis Signup and view all the answers

What level of change does the development of one or a few related analytics applications represent?

Specific analytics applications Signup and view all the answers

What is the primary purpose of predictive analytics?

To examine recent and historical data to predict future outcomes Signup and view all the answers

Which of the following is NOT a field where predictive analytics is commonly applied?

Event planning Signup and view all the answers

How can business analytics enhance the sales function at a company like Aldo?

By predicting customer preferences based solely on historical sales data Signup and view all the answers

What could be a potential concern when using online dating services?

Sharing personal data and privacy issues Signup and view all the answers

Which of the following describes a systematic bias in predictive analytics?

Data collection methods that favor certain demographics over others Signup and view all the answers

What role does predictive analytics play in police work?

It aids in identifying potential crime patterns based on data Signup and view all the answers

Study Notes

Learning Objectives

Utilize a decision support framework to illustrate how technology aids managerial decision-making across all phases.
Describe each phase within the business analytics process.
Define descriptive analytics and provide a relevant example.
Define predictive analytics and provide a relevant example.
Define prescriptive analytics and provide a relevant example.
Identify two examples of presentation tools and their purposes.

Business Analytics Overview

Business analytics (BA) involves using historical data insights to develop actionable decisions.
Business intelligence (BI) is often associated with BA, focusing on processing and analyzing data for intelligence.

Managerial Decision Making

Mintzberg identifies three essential roles of managers: interpersonal, informational, and decisional.
Technology support is critical for managers in decision-making processes.

The Business Analytics Process

BA targets three levels of organizational change:
- Development of specific analytics applications
- Establishment of infrastructure for enterprise-wide analytics
- Institutional support for organizational transformation

Business Analytics Tools

Common tools used in business analytics include:
- Excel
- Multidimensional analysis (OLAP)
- Data mining
- Decision-support systems
- Statistical procedures such as descriptive statistics, affinity analysis, and various regression types.

Descriptive Analytics

Focuses on summarizing past events and behaviors to inform decision-making.
Tools for descriptive analytics include OLAP, data mining, and decision-support systems.
Techniques include sensitivity analysis, what-if analysis, and goal-seeking analysis.

Predictive Analytics

Analyzes historical and recent data to identify patterns and forecast future outcomes.
Practical applications span various fields, including:
- Retail and sales
- Banking
- Manufacturing and production
- Health care
- Marketing
- Weather forecasting
- Social initiatives

Case Studies and Considerations

Stitch Fix raises questions about the types and confidentiality of customer data used in analytics.
Aldo's use of business analytics benefits the company, customers, and employees, highlighting its role in various functions like sales and warehousing.
In online dating, concerns about privacy and personal data sharing illustrate the complexities of using analytics in sensitive areas.
Predictive policing in LA prompts discussions on the potential for bias in analytics and ways to mitigate such biases in systems.

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Description

This quiz focuses on Chapter 12 of 'Introduction to Information Systems', which covers Business Analytics. Participants will learn about decision support frameworks and how technology aids in managerial decision-making through various phases of the business analytics process.