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MIS Essentials, 4e (Kroenke) Chapter 7: Organizations and Information Systems Multiple Choice 1) Which of the following statements is true of personal information systems? A) Personal information systems that support a particular department are called workgroup information systems. B) Adapting to changes in personal information systems is extremely difficult and time consuming. C) Personal information systems have only a single user and so procedures are not documented or formalized. D) The solutions to problems in a personal information system usually involve more than one department. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS) 2) Personal information systems are most likely to be used by ________. A) physician partnerships B) drug salespersons C) PRIDE systems D) hospitals Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 3) Which of the following is a characteristic of workgroup information systems? A) isolated problems B) informal procedures C) resistance to change D) 1000s of users Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

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4) Physician partnerships most likely use ________. A) inter-enterprise information systems B) workgroup information systems C) enterprise information systems D) departmental information systems Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS)

5) Which of the following statements is true of workgroup information systems? A) Workgroup information systems that support a particular department are called enterprise information systems. B) Workgroup information systems that support a particular business function are called personal information systems. C) The users of workgroup information systems are defined by levels of security authorization. D) Workgroup information systems typically support 10 to 100 users. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 6) Which of the following is a characteristic of enterprise information systems? A) They do not document procedures since the procedures are simple and informal. B) They are shared between two or more independent organizations. C) They typically have hundreds to thousands of users. D) They are highly open to change. Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 7) Which of the following statements is true of enterprise information systems? A) They are information systems that are shared by two or more independent organizations. B) The solutions to problems in these systems usually involve more than one department. C) Enterprise information systems typically support less than 100 users. D) They are called personal information systems if they support a particular business function. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

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8) ________ are systems that are shared by two or more independent organizations. A) Inter-enterprise information systems B) Workgroup information systems C) Enterprise information systems D) Personal information systems Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

9) Which of the following is most likely to make use of an inter-enterprise information system? A) hospitals B) drug salespersons C) PRIDE systems D) physician partnerships Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 10) A(n) ________ exists when data are isolated in separated information systems. A) walled garden B) information silo C) mashup D) viral hook Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 11) Information silos arise as a result of ________. A) data integration across several information systems within an organization B) the sharing of an inter-enterprise information system with several organizations C) too many users depending on a single enterprise-wide information system D) data being isolated in systems that are separated across different organizational levels Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

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12) Which of the following is an information systems application that supports the sales and marketing department in an organization? A) HR planning B) compensation management C) lead generation D) recruiting Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe the components of an information system (IS)

13) Which of the following departments in an organization is supported by information systems applications such as recruitment and compensation? A) accounting department B) operations department C) human resources department D) customer service department Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe the components of an information system (IS) 14) Budgeting and treasury management are information systems applications that support an organization's ________. A) manufacturing department B) human resources department C) accounting department D) customer service department Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe the components of an information system (IS) 15) Sales forecasting and brand management are information systems applications that support an organization's ________. A) accounting department B) human resources department C) sales and marketing department D) customer service department Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe the components of an information system (IS)

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16) ________ is an information systems application that supports the human resources department in an organization. A) Compensation B) Sales forecasting C) Financial reporting D) Lead tracking Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe the components of an information system (IS)

17) Which of the following is a problem posed by information silos? A) Data cannot be duplicated. B) A lot of file space is wasted. C) The interdependence between various information systems applications increases. D) There is a lack of integrated enterprise information. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 18) The problems posed by information silos ultimately lead to ________. A) diseconomies of scope B) increased costs for an organization C) diminishing marginal returns D) reduced organizational innovation Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 19) ________ is the activity of altering the existing business processes and designing new ones to take advantage of new information systems. A) Business process management B) Business process reengineering C) Business process outsourcing D) Business process interoperability Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe the components of an information system (IS)

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20) Which of the following statements is true of business process reengineering? A) It is a very fast process and is easy to carry out. B) When combined with ERP, it has a 100 percent success rate. C) It is a very expensive process. D) Due to its streamlined process, it requires no expertise. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 2 Course LO: Discuss best practices for using and managing databases

21) Inherent processes are ________. A) time-consuming business processes that involve substantial investment B) predesigned procedures for using software products C) the set of procedures that help companies implement business process reengineering D) business process reengineering techniques with low success rates Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 22) Which of the following statements is true of inherent processes? A) Inherent processes are almost always a perfect fit. B) Organizations cannot license the software used in inherent processes. C) Inherent processes are expensive and time-consuming. D) Inherent processes provide an alternative to business process reengineering. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 23) The first phase in the customer life cycle involves ________. A) sending messages to target audiences to attract customer prospects B) attempting to win back high-value customers C) converting prospects into customers who need to be supported D) increasing the value of existing customers by selling more products to them Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

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24) When prospects become customers who need to be supported, the organization is in the ________ phase of the customer life cycle. A) customer engagement B) marketing C) customer acquisition D) relationship management Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS)

25) Which of the following is a component of relationship management? A) converting prospects into customers who need to be supported B) increasing the value of existing customers by selling them more products C) positioning products in the minds of customers through promotional strategies D) sending messages to target audiences to attract customer prospects Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 26) During which of the following phases of the customer life cycle does win-back processes categorize customers according to value? A) customer acquisition B) marketing C) relationship management D) churn Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 27) ________ is the last phase in the customer life cycle. A) Marketing B) Customer acquisition C) Churn D) Relationship management Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS)

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28) Which of the following statements is true of customer relationship management (CRM) systems? A) They are applications used for consolidating business operations into a single, consistent, computing platform. B) They vary in the degree of functionality they provide. C) They incorporate accounting, manufacturing, inventory, and human resources applications. D) A major disadvantage of these systems is a lack of consistency in data. Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS)

29) Enterprise resource planning (ERP) helps in ________. A) consolidating business operations into a single, consistent, computing platform B) managing all the interactions with customers C) providing layers of software that connect applications together D) connecting several enterprises within the same industry Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 30) Which of the following statements is true about ERP? A) ERP is a suite of software applications that integrates existing systems by providing layers of software that connect applications together. B) The two major components of ERP systems are manufacturing applications and inventory applications. C) Enterprise resource planning (ERP) is also referred to as enterprise application integration (EAI) due to its highly efficient integration properties. D) ERP systems are used to forecast sales and to create manufacturing plans and schedules to meet those forecasts. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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31) ________ is the worldwide leader of ERP vendors. A) TQM B) EAI C) SCM D) SAP Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 32) ERP was originally used in the ________ domain. A) accounting B) customer support C) manufacturing D) human resources Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

33) ________ is a suite of software applications that consolidates existing systems by providing layers of software that connect applications together. A) Enterprise resource planning (ERP) system B) Enterprise integration application (EAI) C) Customer relationship management (CRM) system D) Rich internet application (RIA) Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 34) Which of the following is a function of EAI? A) It is used to forecast sales and to create manufacturing plans to meet those forecasts. B) It manages all the interactions with customers, from lead generation to customer service. C) It creates information silos by departmentalizing applications. D) It enables a gradual move to ERP. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS)

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35) Which of the following statements is true of EAI? A) A disadvantage of the EAI software is the lack of metadata files that describe where data are located. B) The layers of EAI software prevent existing applications from communicating with each other. C) EAI makes use of a centralized database that acts as a "virtual integrated database" for users to process. D) EAI software can be configured to automatically make conversions needed to share data among different systems. Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 36) The expenses and risks associated with the implementation or upgrading of enterprise systems arise from the ________. A) need for encrypting a company's data before an enterprise system can use the data B) lack of resources within a company to handle the implementation of the system C) lack of variety in the enterprise systems currently being sold in the market D) resistance from a company's employees to changes in existing systems Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

37) When implementing new enterprise systems in a company, process issues that may arise can be effectively resolved by ________. A) encouraging entities at different organizational levels to create separate information systems B) developing committees and steering groups for process management C) bringing into the company conciliators or arbitrators to sort the issues D) giving the responsibility of resolving issues to the company's CEO Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

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38) ________ is a major issue faced by companies when implementing enterprise systems. A) The failure of applications to communicate and share data with each other B) The failure to incorporate accounting and human resource applications C) The lack of a centralized database where important data such as metadata can be stored D) The gap between the requirements of an organization and the capabilities of an application Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 39) ________ is a person's belief that he or she can be successful at his or her job. A) Extroversion B) Conscientiousness C) Self-actualization D) Self-efficacy Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 40) Inter-enterprise PRIDE systems are referred to as ________ because in such systems processing is divided across multiple computing devices. A) distributed systems B) departmental information systems C) business intelligence systems D) integrated systems Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

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True or False 1) Functional information systems are information systems used by a single individual. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS) 2) Workgroup information systems that support a particular department are called personal information systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS) 3) The contact manager in an iPhone is an example of a personal information system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 4) Personal information systems generally support around 10 users. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS) 5) Enterprise information systems typically have hundreds to thousands of users. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS) 6) Enterprise information systems are information systems that span an organization and support activities of people in multiple departments. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

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7) Enterprise information systems are information systems that are shared by two or more independent organizations. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS)

8) The solutions to problems in an enterprise system usually involve more than one enterprise. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 9) In the case of workgroup information systems, problems are resolved by contract and litigation. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe the components of an information system (IS) 10) Inter-enterprise information systems are information systems that are shared by two or more independent departments within an organization. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 11) Information silos help in resolving any problem that may arise due to isolated information systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 12) Information silos arise when entities at one organizational level in a company create information systems that meet only their particular needs. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

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13) The major issue caused by information silos is wasted file space. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 14) When an organization has inconsistent duplicated data, it is said to have a data integrity problem. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

15) Information silos can result in increased cost for an organization. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 16) EAI refers to the activity of altering existing business processes and designing new ones to take advantage of new information systems. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss best practices for using and managing databases 17) Business process reengineering is extremely fast and economical. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss best practices for using and managing databases 18) Inherent processes save organizations from expensive and time-consuming business process reengineering. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

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19) The first phase of the customer life cycle is marketing. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 20) The last phase of the customer life cycle is relationship management. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 21) CRM systems vary in the degree of functionality they provide. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

22) ERP is used to consolidate business operations into a single, consistent, computing platform. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 23) EAI is used to forecast sales and to create manufacturing plans to meet those forecasts. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 24) SAP is the worldwide leader of ERP vendors. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

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25) EAI connects system "islands" via a new layer of software. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 26) Unlike departmental systems in which a single department manager is in charge, enterprise systems have no clear boss. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 27) The development of steering groups is an effective solution for resolving the process issues of an enterprise system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 28) Most organizations today create their own enterprise systems from scratch. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

29) Transitioning from one enterprise system to a new enterprise system is fairly easy due to the integrated steps involved in the process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 30) Self-efficacies are a person's belief that he or she can be successful at his or her job. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases

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31) One of the reasons why people fear change is because it threatens their self-efficacies. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases 32) An inter-enterprise PRIDE system is also referred to as a distributed system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Discuss best practices for using and managing databases Essay 1) What are personal information systems? Answer: Personal information systems are information systems used by a single individual. The contact manager in an iPhone or in an email account is an example of a personal information system. Because such systems have only one user, procedures are simple and are generally not documented or formalized in any way. It is easy to manage change to personal information systems because only one person needs to adapt to the change. And, if there are problems, individual users can solve the problems themselves. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

2) Explain workgroup information systems. Answer: A workgroup information system is an information system that is shared by a group of people for a particular purpose. For example, at a physicians' partnership, doctors, nurses, and staff use information systems to manage patient appointments, keep patient records, schedule in-office procedures and equipment, and facilitate other workgroup activities. Workgroup information systems that support a particular department are sometimes called departmental information systems. An example is the accounts payable system that is used by the accounts payable department. Other workgroup information systems support a particular business function and are called functional information systems. An example of a functional system is a Web storefront. Typically workgroup systems support 10 to 100 users. The procedures for using them must be understood by all members of the group. Often, procedures are formalized in documentation, and users are sometimes trained in the use of those procedures. When problems occur, they almost always can be solved within the group. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

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3) What are enterprise information systems? Answer: Enterprise information systems are information systems that span an organization and support activities in multiple departments. For example, at a hospital, doctors, nurses, the pharmacy, the kitchen, and others use information systems to track patients, treatments, medications, diets, room assignments, and so forth. Enterprise information systems typically have hundreds to thousands of users. Procedures are formalized and extensively documented; users undergo formal procedure training. Sometimes enterprise systems include categories of procedures, and users are defined according to levels of expertise with the system as well as by levels of security authorization. The solutions to problems in an enterprise system usually involve more than one department. Because enterprise systems span many departments and involve potentially thousands of users, they are very difficult to change. Changes must be carefully planned, cautiously implemented, and users given considerable training. Sometimes users are given incentives and other inducements to motivate them to change. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 4) Explain inter-enterprise information systems. Answer: Inter-enterprise information systems are information systems that are shared by two or more independent organizations. Such systems typically involve thousands of users, and solutions to problems require cooperation among different, usually independently owned, organizations. Problems are resolved by meeting, contract, and sometimes by litigation. Because of the wide span, complexity, and multiple companies involved, such systems can be exceedingly difficult to change. The interaction of independently owned and operated information systems is required. Difficulty: Moderate AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

5) What are information silos? Answer: Information silos are the conditions that exist when data are isolated in separated information systems. Silos come into existence as entities at one organizational level create information systems that meet only their particular needs. The major problems caused by information silos at department level include data duplication and data inconsistency, disjointed processes, limited information and lack of integrated information, isolated decisions leading to organizational inefficiencies, and increased expenses for a company. When an organization has inconsistent duplicated data, it is said to have a data integrity problem. Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

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6) What problems do information silos cause? Answer: As organizations grow, information silos will eventually lead to duplication of data and cause potentially serious problems. First, data are duplicated because each application has its own database. Next, when applications are isolated, business processes are disjointed. A consequence of such disjointed systems is the lack of integrated enterprise information. This leads to the fourth consequence: inefficiency. When using isolated functional applications, decisions are made in isolation. Without integration, the left hand of the organization doesn't know what the right hand of the organization is doing. Finally, information silos can result in increased cost for the organization. Duplicated data, disjointed systems, limited information, and inefficiencies all mean higher costs. Difficulty: Hard AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure 7) How can organizations solve the problems posed by information silos? Answer: An information silo occurs when data is stored in isolated systems. The obvious way to fix such a silo is to integrate the data into a single database and revise applications and business processes to use that database. If that is not possible or practical, another remedy is to allow the isolation, but to manage it to avoid problems. Isolated data created by workgroup information systems can be integrated using enterprise-wide applications. Isolated data created by information systems at the enterprise level can be integrated into inter-enterprise systems using distributed applications that process data in a single cloud database or that connect disparate, independent databases so that applications can process those databases as if they were one database. Difficulty: Moderate AACSB: Information Technology Chapter LO: 2 Course LO: Discuss the key issues involved in managing the components of IT infrastructure

8) What is business process reengineering? Answer: Business process reengineering is the activity of altering existing and designing new business processes to take advantage of new information systems. Unfortunately, business process reengineering is difficult, slow, and exceedingly expensive. Systems analysts need to interview key personnel throughout the organization to determine how best to use the new technology. Because of the complexity involved, such projects require high-level and expensive skills and considerable time. Many early projects stalled when the enormity of the project became apparent. Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Discuss best practices for using and managing databases

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9) Describe a CRM system. Answer: A CRM system is a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service. Every contact and transaction with the customer is recorded in the CRM database. Vendors of CRM software claim using their products makes the organization customer-centric. A CRM database includes solicitation and lead management application, sales application, relationship management application, and customer support application. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 10) Explain the four phases of the customer life cycle. Answer: The four phases of the customer life cycle are marketing, customer acquisition, relationship management, and loss/churn. Marketing sends messages to the target market to attract customer prospects. When prospects order, they become customers who need to be supported. Additionally, relationship management processes increase the value of existing customers by selling them more products. Inevitably, over time the organization loses customers. When this occurs, win-back processes categorize customers according to value and attempt to win back high-value customers. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS) 11) What is ERP? Answer: ERP is a suite of applications, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform. ERP includes the functions of CRM and also incorporates accounting, manufacturing, inventory, and human resources applications. ERP systems are used to forecast sales and to create manufacturing plans and schedules to meet those forecasts. Manufacturing schedules include the use of material, equipment, and personnel and thus need to incorporate inventory and human resources applications. Because ERP includes accounting, all of these activities are automatically posted in the general ledger and other accounting applications. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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12) What are some of the benefits of EAI? Answer: EAI is a suite of software applications that integrates existing systems by providing layers of software that connect applications together. Although there is no centralized EAI database, EAI software keeps files of metadata that describe where data are located. Users can access the EAI system to find the data they need. In some cases, the EAI system provides services that supply a "virtual integrated database" for the user to process. The major benefit of EAI is that it enables organizations to use existing applications while eliminating many of the serious problems of isolated systems. Converting to an EAI system is not nearly as disruptive as converting to ERP. It also provides many of the benefits of ERP. Some organizations develop EAI applications as a steppingstone to complete ERP systems. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe the components of an information system (IS)

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MIS Essentials, 4e (Kroenke) Chapter 9: Business Intelligence Systems Multiple Choice 1) ________ process operational and other data in organizations to analyze past performance and make predictions. A) Virtualization software B) Live migration techniques C) Business intelligence systems D) Windowing systems Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 2) Which of the following statements is true of business intelligence (BI) systems? A) Business intelligence systems are primarily used for developing software systems and data mining applications. B) The four standard components of business intelligence systems are software, procedures, applications, and programs. C) The software component of a business intelligence system is called an intelligence database. D) Business intelligence systems analyze an organization's past performance to make predictions. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 3) ________ is the process of obtaining, cleaning, organizing, relating, and cataloging source data. A) Data interpretation B) Pull publishing C) Push publishing D) Data acquisition Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems

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4) Which of the following is a fundamental category of business intelligence (BI) analysis? A) data acquisition B) data mining C) push publishing D) pull publishing Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems

5) Which of the following activities in the business intelligence process involves delivering business intelligence to the knowledge workers who need it? A) data acquisition B) BI analysis C) publish results D) data mining Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems 6) ________ is the process of delivering business intelligence to users without any request from the users. A) Push publishing B) Pull publishing C) Data acquisition D) Data mining Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems 7) ________ requires users to request business intelligence results. A) Push publishing B) Pull publishing C) Data acquisition D) Data mining Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems

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8) The use of an organization's operational data as the source data for a BI system is not usually recommended because it ________. A) is not possible to create reports based on operational data B) is not possible to perform business intelligence analyses on operational data C) requires considerable processing and can drastically reduce system performance D) considers only external data and not internal data regarding an organization's functions Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

9) A ________ is a facility for managing an organization's business intelligence data. A) datasheet B) dataspace C) data warehouse D) data room Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 10) The source, format, assumptions, constraints, and other facts concerning certain data are called ________. A) metadata B) data structures C) microdata D) network packets Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 11) Problematic data are referred to as ________. A) rough data B) clickstream data C) granular data D) dirty data Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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12) Which of the following problems is particularly common for data that have been gathered over time? A) wrong granularity B) lack of integration C) lack of consistency D) missing values Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

13) ________ refers to the level of detail represented by data. A) Abstraction B) Granularity C) Dimensionality D) Aggregation Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 14) Which of the following statements is true of data with granularity? A) Granularity refers to the level of detail represented by the data. B) If granularity is too coarse, data can be made finer by summing and combining. C) The granularity of clickstream data is too coarse. D) If granularity is too coarse, data can be separated into constituent parts using regression. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 15) The more attributes there are in a sample data, the easier it is to build a model that fits the sample data, but that is worthless as a predictor. Which of the following best explains this phenomenon? A) the free rider problem B) the curse of dimensionality C) the tragedy of the commons D) the zero-sum game Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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16) A ________ is a data collection that addresses the needs of a particular department or functional area of a business. A) data mart B) data room C) datasheet D) dataspace Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

17) The purpose of a ________ is to extract data from operational systems and other sources, clean the data, and store and catalog that data for processing by business intelligence tools. A) data mart B) data center C) data room D) data warehouse Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 18) Users in a data mart obtain data that pertain to a particular business function from a ________. A) data room B) data center C) datasheet D) data warehouse Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 19) Which of the following statements is true of a data warehouse? A) A data warehouse is larger than a data mart. B) A data warehouse functions like a retail store in a supply chain. C) Users in a data warehouse obtain data pertaining to a business function from a data mart. D) Data analysts who work with a data warehouse are experts in a particular business function. Answer: A Difficulty: Moderate AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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20) ________ is the process of sorting, grouping, summing, filtering, and formatting structured data. A) Push publishing B) Pull publishing C) Cloud computing D) Reporting analysis Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

21) Which of the following refers to data in the form of rows and columns? A) granulated data B) structured data C) nonintegrated data D) problematic data Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 22) The goal of ________, a type of business intelligence analysis, is to create information about past performance. A) push publishing B) data mining C) reporting D) BigData Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 23) ________ are reports produced when something out of predefined bounds occurs. A) Exception reports B) Static reports C) Dynamic reports D) Subscriptions Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

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24) ________ is the application of statistical techniques to find patterns and relationships among data for classification and prediction. A) Data encryption B) Push publishing C) Data mining D) Pull publishing Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

25) ________ techniques emerged from the combined discipline of statistics, mathematics, artificial intelligence, and machine-learning. A) Push publishing B) Pull publishing C) Data mining D) Exception reporting Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 26) Which of the following statements is true of unsupervised data mining? A) Analysts apply data mining techniques to estimate the parameters of a developed model. B) Analysts create hypotheses only after performing an analysis. C) Regression analysis is the most commonly used unsupervised data mining technique. D) Data miners develop models prior to performing an analysis. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 27) ________ is an unsupervised data mining technique in which statistical techniques identify groups of entities that have similar characteristics. A) Cluster analysis B) Content indexing C) Regression analysis D) Cloud computing Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

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28) In the case of ________, data miners develop models prior to conducting analyses and then apply statistical techniques to data to estimate parameters of the models. A) pull publishing techniques B) supervised data mining C) push publishing techniques D) unsupervised data mining Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

29) Regression analysis is used in ________. A) static reporting B) exception reporting C) supervised data mining D) unsupervised data mining Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 30) ________ is used to measure the impact of a set of variables on another variable during data mining. A) Cluster analysis B) Context indexing C) Cloud computing D) Regression analysis Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 31) Which of the following statements is true of BigData? A) BigData contains only structured data. B) BigData has low velocity and is generated slowly. C) BigData cannot store graphics, audio, and video files. D) BigData refers to data sets that are at least a petabyte in size. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

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32) In the ________ phase, a BigData collection is broken into pieces and hundreds or thousands of independent processors search these pieces for something of interest. A) crash B) control C) Pig D) Map Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

33) The results generated in the Map phase are combined in the ________ phase. A) Pig B) control C) Reduce D) construct Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 34) ________ is an open-source program supported by the Apache Foundation that manages thousands of computers and implements MapReduce. A) Hadoop B) BigData C) Linux D) Apache Wave Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 35) Which of the following statements is true of Hadoop? A) Hadoop is written in C++ and runs on Linux. B) Hadoop includes a query language entitled Big. C) Hadoop is an open-source program that implements MapReduce. D) Technical skills are not required to run and use Hadoop. Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

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36) ________ are business intelligence documents that are fixed at the time of creation and do not change. A) Subscriptions B) Third-party cookies C) Static reports D) Exception reports Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems

37) ________ reports are business intelligence documents that are updated at the time they are requested. A) Subscriptions B) Third-party cookies C) Static D) Dynamic Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems 38) ________ are user requests for particular business intelligence results on a particular schedule or in response to particular events. A) Subscriptions B) Third-party cookies C) Static reports D) Dynamic reports Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems 39) Which of the following statements is true of business intelligence (BI) publishing alternatives? A) The skills required to publish static content are extremely high. B) Publishing dynamic BI is more difficult than publishing static content. C) For static content, the skill required to create a publishing application is high. D) For Web servers, push options are manual. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems

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40) The ________ of business intelligence servers maintains metadata about the authorized allocation of business intelligence results to users. A) exception report B) dynamic report C) delivery function D) management function Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems

True or False 1) Business intelligence systems are information systems that process operational and other data to analyze past performance and to make predictions. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 2) The software component of a business intelligence system is called a business intelligence database. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 3) The data that an organization purchases from data vendors can act as the source data for a business intelligence system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 4) Project management is one of the few domains in which business intelligence is rarely used. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

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5) Using BI for identifying changes in the purchasing patterns of customers is a labor-intensive process. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 6) Business intelligence enables police departments to better utilize their personnel through predictive-policing. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

7) Data mining is the process of obtaining, cleaning, organizing, relating, and cataloging source data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems 8) Publish results is the process of delivering business intelligence to the knowledge workers who need it. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems 9) Pull publishing delivers business intelligence to users without any request from the users. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems 10) A data warehouse is a facility for managing an organization's business intelligence data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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11) External data purchased from outside resources are not included in data warehouses. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 12) Facts about data, such as its source, format, assumptions, and constraints, are called metadata. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 13) Problematic data are termed dirty data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

14) Data granularity refers to the level of detail represented by data. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 15) The granularity in clickstream data is too coarse. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 16) If the granularity of certain data is too coarse, the data can be separated into constituent parts using statistical techniques. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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17) The curse of dimensionality states that the more attributes there are, the more difficult it is to build a model that fits the sample data. Answer: FALSE Difficulty: Moderate AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 18) Data marts are data collections that address the needs of a particular department or functional area of a business. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 19) Data marts are usually larger than data warehouses. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 20) Data analysts who work with data warehouses are not usually experts in a given business function. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

21) Users in a data mart obtain data that pertain to a particular business function from a data warehouse. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 22) An advantage of data warehouses is the low cost required to create, staff, and operate them. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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23) Reporting analysis is used primarily for classifying and predicting BI data. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 24) Structured data is data in the form of rows and columns. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 25) With unsupervised data mining, analysts do not create a model or hypothesis before running the analysis. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 26) Regression analysis is used to identify groups of entities that have similar characteristics. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 27) Cluster analysis measures the impact of a set of variables on another variable. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

28) BigData refers to data sets that are at least a petabyte in size. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

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29) BigData has low velocity and is generated slowly. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 30) MapReduce is a technique for harnessing the power of thousands of computers working in parallel. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 31) BigData has volume, velocity, and variation characteristics that far exceed those of traditional reporting and data mining. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 32) Static reports are business intelligence documents that are updated at the time they are requested. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems 33) A printed sales analysis is an example of a dynamic report. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems 34) Push options are manual when emails or collaboration tools are used for BI publishing. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems

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35) For dynamic content, the skills required to create a publishing application are low. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems 36) The management function of BI servers maintains metadata about the authorized allocation of BI results to users. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems Essay 1) What are business intelligence systems? Answer: Business intelligence (BI) systems are information systems that process operational and other data to analyze past performance and to make predictions. The patterns, relationships, and trends identified by BI systems are called business intelligence. As information systems, BI systems have five standard components: hardware, software, data, procedures, and people. The software component of a BI system is called a BI application. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 2) How does business intelligence help marketers identify changes in the purchasing patterns of customers? Answer: Retailers know that important life events cause customers to change what they buy, and for a short interval, to form new loyalties to new store brands. Before the advent of BI, stores would watch the local newspapers for graduation, marriage, and baby announcements and send ads in response, which is a slow, labor-intensive, and expensive process. However, by applying business intelligence techniques to their sales data, companies can identify a purchasing pattern in different products and by observing this purchasing pattern, companies can send ads for related products to those customers. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems

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3) What is predictive-policing? Answer: Many police departments are facing severe budget constraints that force them to reduce on-duty police personnel and services. Given these budget cuts, police departments need to find better ways of utilizing their personnel. Predictive-policing uses business intelligence to analyze data on past crimes, including location, date, time, day of week, type of crime, and related data, to predict where crimes are likely to occur. Police personnel are then stationed in the best locations for preventing those crimes. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Compare and contrast different business intelligence systems 4) What are the three primary activities in the business intelligence process? Answer: The three primary activities in the business intelligence process include: acquire data, perform analysis, and publish results. Data acquisition is the process of obtaining, cleaning, organizing, relating, and cataloging source data. Business intelligence analysis is the process of creating business intelligence and includes three fundamental categories: reporting, data mining, and BigData. Publish results is the process of delivering business intelligence to the knowledge workers who need it. Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems 5) Differentiate between push publishing and pull publishing. Answer: Push publishing delivers business intelligence to users without any request from the users; the BI results are delivered according to a schedule or as a result of an event or particular data condition. Pull publishing requires the user to request BI results. Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Compare and contrast different business intelligence systems

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6) Explain the functions of a data warehouse. Answer: The functions of a data warehouse are to: 1. Obtain data 2. Cleanse data 3. Organize and relate data 4. Catalog data Programs read operational and other data and extract, clean, and prepare that data for business intelligence processing. The prepared data are stored in a data warehouse database using a data warehouse DBMS, which can be different from the organization's operational DBMS. Data warehouses include data that are purchased from outside sources. Metadata concerning the data–its source, its format, its assumptions and constraints, and other facts about the data–is kept in a data warehouse metadata database. The data warehouse DBMS extracts and provides data to BI applications. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

7) What is data granularity? Answer: Data granularity refers to the level of detail represented by data. Granularity can be too fine or too coarse. In general, it is better to have too fine a granularity than too coarse. If the granularity is too fine, the data can be made coarser by summing and combining. If the granularity is too coarse, however, there is no way to separate the data into constituent parts. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 8) What is clickstream data? Answer: Clickstream data is the data that is captured from customers' clicking behavior. Such data is very fine and includes everything a customer does at a Web site. Because the data is too fine, data analysts must throw away millions and millions of clicks if a study requires data that is coarser. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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9) Explain the curse of dimensionality. Answer: The curse of dimensionality is associated with the problem of data having too many attributes. If internal customer data is combined with customer data that has been purchased, there will be more than hundred different attributes to consider. To be able to select among them is a problem. The curse of dimensionality states that the more attributes there are, the easier it is to build a model that fits the sample data, but that is worthless as a predictor. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems 10) What are the functions of a data warehouse? Answer: A data warehouse takes data from data manufacturers (operational systems and other sources), cleans and processes the data, and locates the data on the shelves of the data warehouse. Data analysts who work with a data warehouse are experts at data management, data cleaning, data transformation, data relationships, and the like. However, they are not usually experts in a given business function. The data warehouse then distributes the data to data marts. Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

11) How is a data warehouse different from a data mart? Answer: A data warehouse can be compared to a distributor in a supply chain. The data warehouse takes data from the data manufacturers (operational systems and other sources), cleans and processes the data, and locates the data on the shelves of the data warehouse. The data analysts who work with a data warehouse are experts at data management, data cleaning, data transformation, data relationships, and the like. The data warehouse then distributes the data to data marts. A data mart is a data collection, smaller than the data warehouse, that addresses the needs of a particular department or functional area of the business. If a data warehouse is the distributor in a supply chain, then a data mart is like a retail store in a supply chain. Users in a data mart obtain data that pertain to a particular business function from a data warehouse. Such users do not have the data management expertise that data warehouse employees have, but they are knowledgeable analysts for a given business function. Difficulty: Moderate AACSB: Information Technology Chapter LO: 3 Course LO: Compare and contrast different business intelligence systems

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12) What is data mining? Answer: Data mining is the application of statistical techniques to find patterns and relationships among data for classification and prediction. Data mining techniques emerged from the combined discipline of statistics, mathematics, artificial intelligence, and machine-learning. Most data mining techniques are sophisticated, and many are difficult to use well. Such techniques are valuable to organizations, and some business professionals, especially those in finance and marketing, have become experts in their use. Data mining techniques fall into two broad categories: unsupervised and supervised. Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 13) What is unsupervised data mining? Answer: With unsupervised data mining, analysts do not create a model or hypothesis before running the analysis. Instead, they apply a data mining technique to the data and observe the results. With this method, analysts create hypotheses after the analysis to explain the patterns found. These findings are obtained solely by data analysis. One common unsupervised technique is cluster analysis. With it, statistical techniques identify groups of entities that have similar characteristics. A common use for cluster analysis is to find groups of similar customers from customer order and demographic data. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

14) Explain supervised data mining. Answer: With supervised data mining, data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model. For example, suppose marketing experts in a communications company believe that cell phone usage on weekends is determined by the age of the customer and the number of months the customer has had the cell phone account. A data mining analyst would then run an analysis that estimates the impact of customer and account age. One such analysis, which measures the impact of a set of variables on another variable, is called a regression analysis. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems

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15) What is BigData? Answer: BigData is a term used to describe data collections that are characterized by huge volume, rapid velocity, and great variety. Considering volume, BigData refers to data sets that are at least a petabyte in size, and usually larger. Additionally, BigData has high velocity, meaning that it is generated rapidly. BigData is varied. BigData may have structured data, but it also may have free-form text, dozens of different formats of Web server and database log files, streams of data about user responses to page content, and possibly graphics, audio, and video files. BigData analysis can involve both reporting and data mining techniques. The chief difference is, however, that BigData has volume, velocity, and variation characteristics that far exceed those of traditional reporting and data mining. Difficulty: Moderate AACSB: Information Technology Chapter LO: 4 Course LO: Compare and contrast different business intelligence systems 16) Differentiate between static reports and dynamic reports. Answer: Static reports are business intelligence documents that are fixed at the time of creation and do not change. A printed sales analysis is an example of a static report. In the business intelligence context, most static reports are published as PDF documents. Dynamic reports are business intelligence documents that are updated at the time they are requested. A sales report that is current as of the time the user accessed it on a Web server is a dynamic report. In almost all cases, publishing a dynamic report requires the business intelligence application to access a database or other data source at the time the report is delivered to the user. Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Compare and contrast different business intelligence systems

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MIS Essentials, 4e (Kroenke) Chapter 12: Information Security Management Multiple Choice 1) A(n) ________ is a measure that individuals or organizations take to block a threat from obtaining an asset. A) Hadoop B) safeguard C) information silo D) third-party cookie Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 2) Which of the following types of security loss is WikiLeaks an example of? A) unauthorized data disclosure B) incorrect data modification C) faulty service D) denial of service Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 3) A person calls the Stark residence and pretends to represent a credit card company. He asks Mrs. Stark to confirm her credit card number. This is an example of ________. A) hacking B) data mining C) pretexting D) sniffing Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

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4) A ________ pretends to be a legitimate company and sends emails requesting confidential data. A) hacker B) phisher C) drive-by sniffer D) key puncher Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

5) Mark receives an email from his bank asking him to update and verify his credit card details. He replies to the mail with all the requested details. Mark later learns that the mail was not actually sent by his bank and that the information he had shared has been misused. Mark is a victim of ________. A) hacking B) sniffing C) data mining D) phishing Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 6) Which of the following is a synonym for phishing? A) drive-by sniffing B) email spoofing C) IP spoofing D) system hacking Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 7) ________ is a technique for intercepting computer communications. A) Spoofing B) Hacking C) Pretexting D) Sniffing Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

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8) ________ take computers with wireless connections through an area and search for unprotected wireless networks. A) Drive-by sniffers B) Key punchers C) Hackers D) Phishers Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

9) Breaking into computers, servers, or networks to steal proprietary and confidential data is referred to as ________. A) usurpation B) spoofing C) hacking D) sniffing Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 10) Which of the following occurs when millions of bogus service requests flood a Web server and prevent it from servicing legitimate requests? A) spoofing B) hacking C) usurpation D) DOS attack Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

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11) ________ occurs when computer criminals invade a computer system and replace legitimate programs with their own unauthorized ones. A) Usurpation B) Encryption C) Spoofing D) Sniffing Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 12) A(n) ________ is a sophisticated, possibly long-running, computer hack that is perpetrated by large, well-funded organizations like governments. A) Advanced Persistent Threat (APT) B) Advanced Volatile Threat (AVT) C) local area network denial (LAND) D) denial of service (DOS) Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

13) Which of the following statements is true of the financial losses due to computer security threats? A) All studies on costs of computer crimes are based on unobtrusive research. B) There are several set standards for tallying computer crime costs and financial losses. C) The financial losses faced by companies due to human error are enormous. D) Damages caused by natural disasters are minimal when compared to the damages due to human errors. Answer: C Difficulty: Moderate AACSB: Information Technology Chapter LO: 2 Course LO: Describe different methods of managing IS security

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14) A(n) ________ is a computer program that senses when another computer is attempting to scan a disk or access a computer. A) intrusion detection system B) account administration system C) business intelligence system D) malware definition Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security 15) Which of the following is considered a personal security safeguard? A) create backup of cookies and temporary files B) send no valuable data via email or IM C) use a single valid password for all accounts D) conduct transactions using http rather than https Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security 16) During which of the following computer crimes does a password cracker try every possible combination of characters? A) DOS attack B) brute force attack C) pretexting D) sniffing Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security

17) ________ are small files that browsers store on users' computers when they visit Web sites. A) Cookies B) Viral hooks C) Mashups D) Keys Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security

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18) Which of the following is a human safeguard against security threats? A) backup and recovery B) firewalls C) physical security D) procedure design Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 19) Which of the following is a technical safeguard against security threats? A) passwords B) backup and recovery C) compliance D) identification and authorization Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 20) Which of the following is a data safeguard against security threats? A) application design B) dissemination of information C) physical security D) malware protection Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security

21) Backup and physical security are ________ against computer security threats. A) technical safeguards B) data safeguards C) human safeguards D) procedural safeguards Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security

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22) A user name ________ a user. A) authenticates B) identifies C) conceals D) encrypts Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 23) A password ________ a user. A) authenticates B) identifies C) conceals D) encrypts Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 24) Users of smart cards are required to enter a ________ to be authenticated. A) personal identification number B) password C) biometric detail D) key Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

25) A ________ has a microchip that is loaded with identifying data. A) payment card B) biometric passport C) smart card D) flashcard Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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26) Which of the following uses an individual's personal physical characteristics such as fingerprints, facial features, and retinal scans for verification purposes? A) flashcards B) smart cards C) biometric authentication D) symmetric encryption Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 27) ________ is the process of transforming clear text into coded, unintelligible text for secure storage or communication. A) Usurpation B) Authentication C) Standardization D) Encryption Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 28) Which of the following statements is true of symmetric encryption? A) With symmetric encryption, the same key is used for both encoding and decoding. B) Asymmetric encryption is simpler and much faster than symmetric encryption. C) With symmetric encryption, encoding and decoding are performed by two different keys. D) Public key/private key is a special version of symmetric encryption used on the Internet. Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

29) The most secure communications over the Internet use a protocol called ________. A) SMTP B) SFTP C) HTTPS D) HTTP Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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30) With HTTPS, data are encrypted using a protocol called the ________. A) Secure Shell (SSH) B) Secure Socket Layer (SSL) C) File Transfer Protocol (FTP) D) Post Office Protocol (POP) Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 31) With HTTPS, data are encrypted using the Secure Socket Layer (SSL) protocol, which is also known as ________. A) File Transfer Protocol (FTP) B) Simple Mail Transfer Protocol (SMTP) C) Secure Shell (SSH) D) Transport Layer Security (TLS) Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 32) A(n) ________ sits outside an organizational network and is the first device that Internet traffic encounters. A) internal firewall B) perimeter firewall C) packet-filtering firewall D) application firewall Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

33) ________ determine whether to pass each part of a message by examining its source address, destination addresses, and other such data. A) Perimeter firewalls B) Internal firewalls C) Packet-filtering firewalls D) Application firewalls Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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34) ________ includes viruses, worms, Trojan horses, spyware, and adware. A) Malware B) Metadata C) Shareware D) Firewall Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 35) Which of the following refers to viruses that masquerade as useful programs? A) adware B) Trojan horses C) spyware D) payloads Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 36) Adware and spyware are similar to each other in that they both ________. A) masquerade as useful programs B) are specifically programmed to spread C) are installed without a user's permission D) are used to replicate programs Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

37) Which of the following is an example of a data safeguard against security threats? A) application design B) backup and recovery C) accountability D) procedure design Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 6 Course LO: Describe different methods of managing IS security

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38) Organizations should protect sensitive data by storing it in ________ form. A) digital B) standardized C) encrypted D) structured Answer: C Difficulty: Easy AACSB: Information Technology Chapter LO: 6 Course LO: Describe different methods of managing IS security 39) The procedure of entrusting a party with a copy of an encryption key that can be used in case the actual key is lost or destroyed is called ________. A) key escrow B) asymmetric encryption C) symmetric encryption D) biometric authentication Answer: A Difficulty: Easy AACSB: Information Technology Chapter LO: 6 Course LO: Describe different methods of managing IS security 40) Which of the following statements is true about position sensitivity? A) Position sensitivity is a type of data safeguard. B) Documenting position sensitivity enables security personnel to prioritize their activities. C) Documentation of position sensitivity is carried out only for highly sensitive jobs. D) Documentation of position sensitivity is carried out only for new employees. Answer: B Difficulty: Moderate AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security

41) The enforcement of security procedures and policies consists of three interdependent factors: ________. A) centralized reporting, preparation, and practice B) account administration, systems procedures, and security monitoring C) separation of duties, provision of least privilege, and position sensitivity D) responsibility, accountability, and compliance Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security

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42) In terms of password management, when an account is created, users should ________. A) create two passwords and switch back and forth between the two B) immediately change the password they are given to a password of their own C) maintain the same password they are given for all future authentication purposes D) ensure that they do not change their passwords frequently, thereby reducing the risk of password loss Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security 43) Typically, a help-desk information system has answers to questions that only a true user would know. Which of the following statements is true of this information? A) It allows help-desk representatives to create new passwords for users. B) It reduces the strength of the security system. C) It protects the anonymity of a user. D) It helps authenticate a user. Answer: D Difficulty: Moderate AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security 44) Activity log analyses constitute an important ________ function. A) account administration B) security monitoring C) password management D) data administration Answer: B Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security

45) A(n) ________ includes how employees should react to security problems, whom they should contact, the reports they should make, and steps they can take to reduce further loss. A) application design B) procedure design C) contingency plan D) incident-response plan Answer: D Difficulty: Easy AACSB: Information Technology Chapter LO: 8 Course LO: Describe different methods of managing IS security

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True or False 1) A threat is a person or an organization that seeks to obtain or alter data illegally, without the owner's permission or knowledge. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 2) Pretexting occurs when someone deceives by pretending to be someone else. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 3) Spoofing is a technique for intercepting computer communications. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 4) Email spoofing is a synonym for phishing. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 5) Drive-by phishers take computers with wireless connections through an area and search for unprotected wireless networks. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

6) Incorrectly increasing a customer's discount is an example of incorrect data modification. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

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7) An Advanced Persistent Threat (APT) is a sophisticated computer hack that is perpetrated by large, well-funded organizations like governments. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 8) Damages caused by natural disasters are minimal when compared to the damages due to human errors. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe different methods of managing IS security 9) Studies on the cost of computer crimes are mostly based on surveys. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 2 Course LO: Describe different methods of managing IS security 10) In a brute force attack, a password cracker tries every possible combination of characters. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security 11) A person should preferably use the same password for different sites so as to avoid confusion. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security 12) While making online purchases, a person should buy only from vendors who support https. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security

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13) Risk management is a critical security function of an organization's senior management. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 14) Financial institutions must invest heavily in security safeguards because they are obvious targets for theft. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 15) Malware protection is an example of a technical safeguard. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 16) The creation of a backup copy of all database content of an organization is a technical safeguard. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 17) Technical safeguards include encryption and the usage of passwords. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 18) Technical safeguards involve both software and hardware components of an information system. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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19) A user name authenticates a user, and a password identifies that user. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

20) Smart cards are convenient to use because they don't require a PIN number for authentication. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 21) A criticism of biometric authentication is that it provides weak authentication. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 22) With asymmetric encryption, two different keys are used for encoding and decoding a message. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 23) The most secure communications over the Internet use a protocol called HTTP. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 24) Packet-filtering firewalls sit outside an organizational network. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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25) Packet-filtering firewalls examine each part of a message and determine whether to let that part pass. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 26) Perimeter firewalls are the simplest type of firewall. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

27) Spyware programs are installed on a user's computer without the user's knowledge. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 28) Viruses, worms, and Trojan horses are types of firewalls. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 29) A virus is a computer program that replicates itself. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 30) Malware definitions are patterns that exist in malware code. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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31) The creation of backup copies of database contents ensures the protection of the database. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6 Course LO: Describe different methods of managing IS security 32) The loss of encryption keys by employees is referred to as key escrow. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 6 Course LO: Describe different methods of managing IS security 33) In an organization, the security sensitivity for each position should be documented. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security

34) The existence of accounts that are no longer necessary do not pose any security threats. Answer: FALSE Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security 35) Typically, a help-desk information system has answers to questions that only the true or actual user of an account or system would know. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security 36) Incident-response plans should provide centralized reporting of all security incidents. Answer: TRUE Difficulty: Easy AACSB: Information Technology Chapter LO: 8 Course LO: Describe different methods of managing IS security

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Essay 1) Describe the terms phishing, spoofing, and sniffing. Answer: Phishing is a technique for obtaining unauthorized data that uses pretexting via email. A phisher pretends to be a legitimate company and sends an email requesting confidential data, such as account numbers, Social Security numbers, account passwords, and so forth. Spoofing is another term for someone pretending to be someone else. IP spoofing occurs when an intruder uses another site's IP address to masquerade as that other site. Email spoofing is a synonym for phishing. Sniffing is a technique for intercepting computer communications. With wired networks, sniffing requires a physical connection to the network. With wireless networks, no such connection is required. Drive-by sniffers simply take computers with wireless connections through an area and search for unprotected wireless networks. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security

2) Explain the concept of denial of service (DOS) in information management. Answer: Human error in following procedures or a lack of procedures can result in denial of service (DOS). For example, humans can inadvertently shut down a Web server or corporate gateway router by starting a computationally intensive application. Denial-of-service attacks can be launched maliciously. A malicious hacker can flood a Web server, for example, with millions of bogus service requests that so occupy the server that it cannot service legitimate requests. Computer worms can infiltrate a network with so much artificial traffic that legitimate traffic cannot get through. Natural disasters may also cause systems to fail, resulting in denial of service. Difficulty: Easy AACSB: Information Technology Chapter LO: 1 Course LO: Describe different methods of managing IS security 3) What are some of the recommended personal security safeguards against security threats? Answer: Following are some of the recommended personal security safeguards against security threats: 1. Create strong passwords 2. Use multiple passwords 3. Send no valuable data via email or IM 4. Use https at trusted, reputable vendors 5. Remove high-value assets from computers 6. Clear browsing history, temporary files, and cookies 7. Update antivirus software 8. Demonstrate security concern to your fellow workers 9. Follow organizational security directives and guidelines 10. Consider security for all business initiatives Difficulty: Easy AACSB: Information Technology Chapter LO: 3 Course LO: Describe different methods of managing IS security

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4) Explain the two critical security functions that an organization's senior management needs to address. Answer: The senior management in an organization needs to address two critical security functions: security policy and risk management. Considering the first, senior management must establish a company-wide security policy that states the organization's posture regarding data that it gathers about its customers, suppliers, partners, and employees. At a minimum, the policy should stipulate: what sensitive data the organization will store, how it will process that data, whether data will be shared with other organizations, how employees and others can obtain copies of data stored about them, how employees and others can request changes to inaccurate data, what employees can do with their own mobile devices at work, and what nonorganizational activities employees can take with employer-owned equipment. Specific policy depends on whether the organization is governmental or nongovernmental, on whether it is publically held or private, on the organization's industry, on the relationship of management to employees, and other factors. The second senior management security function is to manage risk. Risk cannot be eliminated, so "manage risk" means to proactively balance the trade-off between risk and cost. This trade-off varies from industry to industry and from organization to organization. Difficulty: Easy AACSB: Information Technology Chapter LO: 4 Course LO: Describe different methods of managing IS security 5) Discuss briefly the pros and cons of biometric authentication. Answer: Biometric authentication uses personal physical characteristics such as fingerprints, facial features, and retinal scans to authenticate users. Biometric authentication provides strong authentication, but the required equipment is expensive. Often, too, users resist biometric identification because they feel it is invasive. Biometric authentication is in the early stages of adoption. Because of its strength, it likely will see increased usage in the future. It is also likely that legislators will pass laws governing the use, storage, and protection requirements for biometric data. Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 6) Differentiate between symmetric and asymmetric encryption. Answer: To encode a message, a computer program uses an encryption method with a key to convert a noncoded message into a coded message. The resulting coded message looks like gibberish. Decoding (decrypting) a message is similar; a key is applied to the coded message to recover the original text. With symmetric encryption, the same key is used to encode and to decode. With asymmetric encryption, two keys are used; one key encodes the message, and the other key decodes the message. Symmetric encryption is simpler and much faster than asymmetric encryption. A special version of asymmetric encryption, public key/private key, is used on the Internet. Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security

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7) What are firewalls? What types of firewalls are commonly used? Answer: A firewall is a computing device that prevents unauthorized network access. A firewall can be a special-purpose computer or it can be a program on a general-purpose computer or on a router. Organizations normally use multiple firewalls. A perimeter firewall sits outside the organizational network; it is the first device that Internet traffic encounters. In addition to perimeter firewalls, some organizations employ internal firewalls inside the organizational network. A packet-filtering firewall examines each part of a message and determines whether to let that part pass. To make this decision, it examines the source address, the destination addresses, and other data. Packet-filtering firewalls can prohibit outsiders from starting a session with any user behind the firewall. Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 8) List some important malware safeguards. Answer: It is possible to avoid most malware using the following malware safeguards: (1) install antivirus and antispyware programs on computers, (2) set up antimalware programs to scan computers frequently, (3) update malware definitions, (4) open email attachments only from known sources, (5) promptly install software updates from legitimate sources, and (6) browse only in reputable Internet neighborhoods. Difficulty: Easy AACSB: Information Technology Chapter LO: 5 Course LO: Describe different methods of managing IS security 9) How can data safeguards protect against security threats? Answer: Data safeguards protect databases and other organizational data. Both data and database administration are involved in establishing data safeguards. First, data administration should define data policies. Then, data administration and database administrations work together to specify user data rights and responsibilities. Third, those rights should be enforced by user accounts that are authenticated at least by passwords. The organization should protect sensitive data by storing it in encrypted form. It is important to periodically create backup copies of database contents. Physical security is another data safeguard. Difficulty: Easy AACSB: Information Technology Chapter LO: 6 Course LO: Describe different methods of managing IS security

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10) Explain how defining positions in an organization can safeguard against security threats. Answer: Effective human safeguards begin with definitions of job tasks and responsibilities. In general, job descriptions should provide a separation of duties and authorities. For example, no single individual should be allowed to both approve expenses and write checks. Instead, one person should approve expenses, another pay them, and a third should account for the payment. Similarly, in inventory, no single person should be allowed to authorize an inventory withdrawal and also to remove the items from inventory. Given appropriate job descriptions, user accounts should be defined to give users the least possible privilege needed to perform their jobs. Similarly, user accounts should prohibit users from accessing data their job description does not require. Because of the problem of semantic security, access to even seemingly innocuous data may need to be limited. Finally, the security sensitivity should be documented for each position. Some jobs involve highly sensitive data. Other positions involve no sensitive data. Documenting position sensitivity enables security personnel to prioritize their activities in accordance with the possible risk and loss. Difficulty: Moderate AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security 11) What are the three interdependent factors involved in the enforcement of security policies and procedures in an organization? Answer: Enforcement consists of three interdependent factors: responsibility, accountability, and compliance. First, a company should clearly define the security responsibilities of each position. The design of the security program should be such that employees can be held accountable for security violations. Procedures should exist so that when critical data are lost, it is possible to determine how the loss occurred and who is accountable. Finally, the security program should encourage security compliance. Employee activities should regularly be monitored for compliance, and management should specify the disciplinary action to be taken in light of noncompliance. Difficulty: Easy AACSB: Information Technology Chapter LO: 7 Course LO: Describe different methods of managing IS security

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12) Describe an incident-response plan. Answer: Every organization should have an incident-response plan as part of its security program. The plan should include how employees are to respond to security problems, whom they should contact, the reports they should make, and steps they can take to reduce further loss. The plan should provide centralized reporting of all security incidents that will enable an organization to determine if it is under systematic attack or whether an incident is isolated. Centralized reporting also allows the organization to learn about security threats, take consistent actions in response, and apply specialized expertise to all security problems. Viruses and worms can spread very quickly across an organization's networks, and a fast response will help to mitigate the consequences. Because of the need for speed, preparation pays. The incident-response plan should identify critical personnel and their off-hours contact information. These personnel should be trained on where to go and what to do when they get there. Finally, organizations should periodically practice incident response. Difficulty: Easy AACSB: Information Technology Chapter LO: 8 Course LO: Describe different methods of managing IS security