Question Type: True/False

Package Title: Testbank Questions
Course Title: MIS 3e

Chapter Number: 3
Question Type: True/False
1) Managing data effectively is inexpensive for organizations.
Answer: False
Title: Testbank Question 3.01

Learning Objective 1: LO 3.0: Provide a real world example of data and knowledge
management.
Section Reference 1: Introduction
Difficulty: Easy
Bloom’s Taxonomy: Knowledge
2) The best way to capture the data in an organized format is to use a database.
Answer: True

Learning Objective 1: LO 3.0: Provide a real world example of data and knowledge
management.
Difficulty: Medium
3) It is easy to manage all the data coming into an organization.
Answer: False

Learning Objective 1: LO 3.1 Discuss ways that common challenges in managing data
can be addressed using data governance.
Section Reference 1: 3.1 Managing Data
Difficulty: Easy
Bloom’s Taxonomy: Comprehension
4) Increasing amounts of external data need to be considered in making organizational

decisions.
Answer: True

Difficulty: Easy
5) Data rot refers to the quality of the data itself.
Answer: False

Difficulty: Medium
6) Master data are generated and captured by operational systems.
Answer: False

Difficulty: Easy
7) It is important for applications and data to be dependent on each other.
Answer: False

Learning Objective 1: LO 3.2 Discuss the advantages and disadvantages of relational
databases.
Section Reference 1: 3.2 The Database Approach
Difficulty: Easy
8) A negative value for a student’s grade point average is an example of a data integrity
problem.
Answer: True

databases.
Difficulty: Easy
9) An entity is a person, place, thing, or event about which information is maintained.
Answer: True

databases.
Difficulty: Easy
10) An attribute is any characteristic or quality that describes a particular entity.
Answer: True

Learning Objective 1: LO 3.2 Explain how to interpret relationships depicted in an entity-
relationship diagram.
Difficulty: Easy
11) The secondary key is a field that identifies a record with complete uniqueness.
Answer: False

databases.
Difficulty: Easy
12) You would be an instance of your university’s STUDENT class.
Answer: True

databases.
Difficulty: Easy
13) Refer to IT’s About Business 3.2 – Google’s Knowledge Graph: Google’s
knowledge graph has been integrated into YouTube where it is used to organize videos
and make suggestions to users.
Answer: True

Section Reference 1: IT’s About Business 3.2 – GOOGLE’s Knowledge Graph
Difficulty: easy
14) The relational database model is based on the concept of three-dimensional tables.
Answer: False

Learning Objective 1: LO 3.3 Define Big Data, and discuss its basic characteristics.
Difficulty: Easy
15) Big Data is easy to define.
Answer: False

Section Reference 1: 3.3 Big Data
Learning Objective 1: LO 3.3. Define Big Data, and discuss its basic characteristics.
Difficulty: Easy
16) Big Data has three distinct characteristics that distinguish it from traditional data.
Answer: True

Difficulty: Easy
17) Today, large corporations are able to process big data but only at great expense.
Answer: False

Difficulty: Medium
18) Big data can only come from a trusted source.
Answer: False

Difficulty: Medium
19) Refer to IT’s About Business 3.3 – The MetLife Wall: MetLife uses the Wall to store
employment resumes for later review.
Answer: True

Section Reference 1: IT’s About Business 3.3 – The MetLife Wall
Difficulty: Hard
20) In a data warehouse, existing data are constantly purged as new data come in.
Answer: False

Learning Objective 1: LO 3.4 Recognize the necessary environment to successfully
implement and maintain data warehouses.
Section Reference 1: 3.4 Data Warehouses and Data Marts
Difficulty: Easy
21) An organization’s data warehouse generally maintains its operational data.
Answer: False

Difficulty: Easy
22) Online analytical processing (OLAP) involves the analysis of accumulated data by
end users.
Answer: True

Difficulty: Easy
23) Data marts are designed for the end-user needs in a strategic business unit or
department.
Answer: True

Difficulty: Easy
24) Refer to IT’s About Business 3.4 – Data Warehouse Gives Nordea Bank a Single
Version of the Truth: The data warehouse enables Nordea to develop a customer
profitability application for its final managers.
Answer: False

Section Reference 1: IT’s About Business 3.4 – Data Warehouse Gives Nordea Bank a
Single Version of the Truth
Difficulty: Hard
25) Tacit knowledge is the more objective, rational, and technical types of knowledge.
Answer: False

Learning Objective 1: LO 3.5 Describe the benefits and challenges of implementing
knowledge management system in organizations.
Section Reference 1: 3.5 Knowledge Management
Difficulty: Easy
26) Explicit knowledge refers to the cumulative store of subjective learning, which is
personal and hard to formalize.
Answer: False

Difficulty: Easy
27) When you start a job, you are given an employee handbook which contains the
company’s tacit knowledge.
Answer: False

Difficulty: Medium
28) When you start a job, you watch what other employees are doing and ask them to
explain why they do it in a particular way. They are sharing their tacit knowledge.
Answer: True

Difficulty: Medium
29) Refer to Closing Case #2 – Can Organizations Have Too Much Data?: Storing vast
amounts of data in a data warehouse has little of no additional to the organization.
Answer: False

Learning Objective 1: LO 3.6 Summarize the fundamental concepts related to data and
knowledge management..
Section Reference 1: Closing Case 2
Difficulty: Medium
Question Type: Multiple Choice
30) Refer to the Opening Case – Flurry Gathers Data from Smartphone Users. Which of
the following activities does Flurry NOT perform?
a) Performing real-time sale of advertising for mobile devices.
b) Handling an advertising inventory that is bought and sold on a quantity basis, via
instantaneous auction.
c) Forwarding ad requests to an advertising exchange, which submits it and the
accompanying data to multiple advertisers.
d) Providing a high-speed auction system for targeting ads to individuals.
Answer: b

Learning Objective 1: LO 3.0 Provide a real world example of data and knowledge
management.
Section Reference 1: Opening Case: Flurry Gathers Data from Smartphone Users
Difficulty: Medium
Bloom’s Taxonomy: Application
31) Refer to the Opening Case – Flurry Gathers Data from Smartphone Users: Which of
the following is not a correct statement?
a) Flurry’s software helps advertisers by creating an identifying and anonymous ID for

each device.
b) Flurry encrypts individual user data.
c) Flurry uses cookies to handle ads on mobile devices.
d) Flurry might be in violation to EU’s E-Privacy Directive.
Answer: c

management.
Section Reference 1: Opening Case: Flurry Gathers Data from Smartphone Users
Difficulty: Medium
32) Which of the following has the broadest impact on an organization?
a) Decisions about hardware.

b) Decisions about software
c) Decisions about data
d) All of the above have an equal impact.
Answer: c

management.
Difficulty: Easy
33) Which of the following is not a reason why managing data is difficult over time?
a) New systems are developed.

b) The media the data are stored on becomes problematic.
c) New sources of data are created.
d) The amount of data increases exponentially.
e) All of these are reasons why managing data is difficult over time.
Answer: e

Difficulty: Medium
34) Refer to IT’s About Business 3.1 – New York City Opens Its Data to All: What does
New York’s “Open Data Policy and Technical Standards Manual” do?
a) Defines how the city’s network works.

b) Details how city agencies can gather, structure, and automate data flows to comply
with local law.
c) Provides personal information to the press.
d) Merges city data with data other cities.
Answer: b

Section Reference 1: IT’s About Business 3.1 – New York City Opens Its Data to All
Difficulty: Medium
35) Refer to IT’s About Business 3.1 – New York City Opens Its Data to All: Which is not
a goal of New York’s Open data policy?
a) Providing information so users of the data can track others.
b) Permiting anyone with the proper skills to utilize the data to improve the city’s quality
of life.
c) Permiting users to overlay data on gang activity and available youth programs.
d) Performing in-depth analysis of traffic crashes.
Answer: a

Section Reference 1: IT’s About Business 3.1 – New York City Opens Its Data to All
Difficulty: Medium
36) _____ is a formal approach to managing data consistently across an entire

organization.
a) Database management
b) Enterprise information management
c) Data warehousing
d) Data governance
e) Data mart
Answer: d

Section reference 1: 3.1 Managing Data
Difficulty: Easy
Question Type: Multiple Select
37) Which of the following are requirements under the Sarbanes-Oxley act? (check all that
apply)
a) Public companies must evaluate and disclose the effectiveness of their internal
financial controls.
b) Companies must hire independent auditors to verify the disclosures.
c) IT employees are held personally responsible for the release and validity of all filings.
d) Company officers can be held personally liable if the company lacks satisfactory data
management policies.
e) Companies will not be held liable if a security breach occurs.
Answer: a.b.d

Difficulty: Medium
Learning Objective 1: LO 3.1 Discuss ways that common challenges in managing data can be
addressed using data governance.
Question Type: Multiple Choice
38) _____ provide(s) companies with a single version of the truth for their data.
a) Data warehouses
b) Data marts
c) Databases
d) Master data management
e) Enterprise information management
Answer: d

Difficulty: Easy
39) Organizations are turning to data governance for which of the following reasons?
a) They have too little data.

b) They are responding to federal regulations.
c) Their data are typically structured.
d) Their data are usually located in the organization’s databases.
e) Data across their organizations are generally consistent.
Answer: b

Difficulty: Hard
Bloom’s Taxonomy: Analysis
40) _____ describe(s) the activities of the business, whereas _____ categorize(s),
aggregate(s), and evaluate(s) data generated by the organization’s activities.
a) Transaction data, master data

b) Source data, transaction data
c) Operational data, master data
d) Master data, source data
e) Business dimensional data, databases
Answer: a

Difficulty: Medium
41) ________ occurs when applications cannot access data associated with other
applications.
a) Data isolation
b) Data integrity
c) Data consistency
d) Data redundancy
e) Application/Data dependence
Answer: a

Difficulty: Easy
42) _________ occurs when various copies of the data agree.
a) Data isolation
b) Data integrity
c) Data consistency
d) Data redundancy
e) Application/Data dependence
Answer: c

Difficulty: Easy
43) You have a checking account and a separate savings account in your neighborhood
bank. You’ve recently moved and gave the bank your new address for your checking
account. You forgot all about the savings account. About three months later you receive
a letter about your savings account which was sent to the wrong address. This is an
example of __________.
a) Data redundancy
b) Data inconsistency
c) Data isolation
d) Data security
e) Data dependence.
Answer: b

Difficulty: Easy
44) Refer to IT’s About Business 3.2 – Google’s Knowledge Graph: Google’s
knowledge graph can be considered____________.
a) a data base of map locations.

b) a vast data base that connects facts on people, places, and things together.
c) a system to graph information entered by users.
d) a tracking system of searches.
Answer: b

Section Reference 1: IT’s About Business 3.2
Difficulty: Medium
45) Place the following members of the data hierarchy in their correct order:
a) Bit – byte – field – record – database – file

b) Bit – field – byte – record – file – database
c) Byte – bit – record – field – database
d) Bit – byte – field – record – file – database
e) Bit – record – field – byte – file -- database
Answer: d

Section Reference 1: 3.2 The Database Approach: Data Hierarchy
Difficulty: Easy
46) In the data hierarchy, the smallest element is the _____.
a) Record.
b) Bit.
c) Byte.
d) Character.
e) File.
Answer: b

Difficulty: Easy
47) A(n) _____ is a logical grouping of characters into a word, a small group of words,
or a complete number.
a) Byte
b) Field
c) Record
d) File
e) Database
Answer: b

Difficulty: Easy
48) A(n) _____ is a logical grouping of related fields.
a) Byte
b) Field
c) Record
d) File
e) Database
Answer: c

Difficulty: Easy
49) A(n) _____ is a logical grouping of related records.
a) Byte
b) Field
c) Record
d) File
e) Database
Answer: d

Difficulty: Easy
50 A(n) _____ represents a single character, such as a letter, number, or symbol.
a) Byte
b) Field
c) Record
d) File
e) Database
Answer: a

Difficulty: Easy
51) In a database, the primary key field is used to _____.
a) specify an entity
b) create linked lists
c) identify duplicated data
d) uniquely identify a record
e) uniquely identify an attribute
Answer: d

Difficulty: Easy
52) _____ are fields in a record that have some identifying information but typically do
not identify the record with complete accuracy.
a) Primary keys
b) Secondary keys
c) Duplicate keys
d) Attribute keys
e) Record keys
Answer: b

Difficulty: Easy
53) As an individual student in your university’s student database, you are a(n) _____ of
the STUDENT class.
a) instance
b) individual
c) representative
d) entity
e) relationship
Answer: a

Difficulty: Medium
54) In a university’s relational database, the student record contains information

regarding the student’s last name. The last name is a(n) _________.
a) attribute.
b) entity.
c) primary key.
d) object.
e) file.
Answer: a
Difficulty: Easy
55) What are the three distinct characteristics that distinguish big data from traditional data?
a) volume, variety and veracity

b) volume, velocity and verification
c) volume, velocity and variety
d) volume, verification and variety
Answer: c

Section reference 1: 3.3 Big Data
Difficulty: Medium
56) Traditional data formats change ______ while big data formats change _______.
a) slowly, rapidly
b) rapidly, slowly
c) slowly, incrementally
d) both formats of data change at the same rate
Answer: a

Difficulty: Medium
57) Which of the following actions is a typical first step that an organization might take
towards managing big data?
a) developing data warehouses for decision making.

b) integrating information silos into a database environment.
c) translating databases to NoSQL.
d) purchasing knowledge management systems
Answer: b
Difficulty: Medium
58) Refer to IT’s About Business 3.3 – The MetLife Wall: Which of the following
statements about MetLife’s Wall application is not correct?
a) The application integrates all relevant customer data on a single screen.

b) The application was inspired by FaceBook’s wall.
c) The application forced MetLife to move all its customer data into one database.
d) The application integrates different sources of customer data.
Answer: c

Section Reference 1: IT’s About Business 3.3 – The MetLife Wall
Difficulty: Hard
59) The data in a data warehouse have which of the following characteristics?
a) They are organized by subject.

b) They are coded in different formats.
c) They are updated in real time.
d) They are typically retained for a defined, but limited, period of time.
e) They are organized in a hierarchical structure.
Answer: a

implement and maintain data warehouses..
Difficulty: Medium
60) The data in a data warehouse ___________.
a) are updated constantly in real time.

b) are updated in batch mode, approximately once per day.
c) are not updated.
d) are purged constantly as new data enter.
e) are available for MIS analysts, but not users.
Answer: c

Difficulty: Medium
61) The process of moving data from various sources into the data warehouse is called
_________.
a) uploading.
b) extracting, transforming, and loading.
c) online transaction processing.
d) master data management.
e) online analytical processing.
Answer: b

Difficulty: Easy
62) Compared to data warehouses, data marts have which one of the following
characteristics?
a) They cost less.

b) They have longer lead times for implementation.
c) They provide for central rather than local control.
d) They contain more information.
e) They are more difficult to navigate.
Answer: a

Difficulty: Medium
63) Refer to IT’s About Business 3.4 – Data Warehouse Gives Nordea Bank a Single
Version of the Truth: Which of the following statement about Nordea’s data warehouse
is not correct?
a) It reduced reporting times.

b) It enabled bank to conduct analysis with greater accuracy.
c) It enabled bank to conduct analysis more quickly, but at a higher cost.
d) Managers and controllers receive the branch results in same format.
Answer: c

Section Reference 1: IT’s About Business 3.4 – Data Warehouse Gives Nordea Bank a
Single Version of the Truth
Difficulty: Medium
65) _____ is a process that helps organizations identify, select, organize, disseminate,
transfer, and apply expertise that are part of the organization’s memory and typically
reside inside the organization in an unstructured manner.
a) Discovery
b) Knowledge management
c) Decision support
d) Online analytical processing
e) Data mining
Answer: b

Difficulty: Easy
66) _____ can be exercised to solve a problem, whereas _____ may or may not be
able to be exercised to solve a problem.
a) Knowledge, information
b) Data, information
c) Information, data
d) Information, knowledge
e) Data, knowledge
Answer: a

Difficulty: Medium
67) Explicit knowledge has which of the following characteristics?
a) objective
b) personal
c) slow
d) costly to transfer
e) ambiguous
Answer: a

Difficulty: Medium
68) Tacit knowledge has which of the following characteristics?
a) codified
b) objective
c) unstructured
d) rational
e) technical
Answer: c

Difficulty: Medium
69) Historically, management information systems have focused on capturing, storing,

managing, and reporting _____ knowledge.
a) tacit
b) explicit
c) managerial
d) geographical
e) cultural
Answer: b

Difficulty: Medium
70) The most important benefit of knowledge management systems is _________.
a) They improve customer service.

b) They make best practices available to employees.
c) They enable the organization to retain scarce knowledge when employees retire.
d) They improve employee morale.
e) They make product development more efficient.
Answer: b

Difficulty: Medium
71) Refer to Closing Case #1 – Tapping the Power of Big Data: Which of the following is not a
correct statement?
a) The data is not reliable.

b) The amount of data exceeds the available storage.
c) The existing networks can’t handle the volume.
d) It is more difficult to protect the data.
e) The vast amounts of data make decision making more complicated.
Answer: a

knowledge management.
Difficulty: Medium
73) Refer to Closing Case #2 – Can Organizations Have Too Much Data?: Which of the
following is not a cost category of hoarding data?
a) Infrastructure costs
b) Hidden costs
c) Legal and compliance costs
d) Regulatory costs
e) All of the above are costs related to hoarding data.
Answer: e

knowledge management.
Difficulty: Medium
Question Type: Essay
74) Discuss why decisions concerning data structure have a broader impact than
decisions concerning hardware and software.

management.
Difficulty: Medium
Bloom’s Taxonomy: Synthesis
75) Discuss the difficulties involved in managing data.

Difficulty: Medium
76) Why is data governance so important for organizations?

Difficulty: Hard
77) Differentiate between master data and transaction data.

Difficulty: Hard
Bloom’s Taxonomy: Evaluation
78) Define each element of the data hierarchy, in order from smallest to largest.

Difficulty: Medium
79) Discuss the advantages of the database approach.

Difficulty: Medium
80) Explain the six problems that can be minimized using the database approach.

Difficulty: Medium
81) Describe the relational database model.

Difficulty: Medium
82) List ways in which organizations can leverage big data to gain value.

Difficulty: Medium
Learning Objective 1: LO 3.3 Define Big Data, and discuss its basic characteristics.
83) Describe the characteristics of a data warehouse.

Learning Objective 1: LO 3.4 Explain the elements necessary to successfully implement and
maintain data warehouses.
Difficulty: Medium
84) Identify and explain the advantages of the four characteristics of data warehouses.

Difficulty: Medium
85) What are the advantages of a data mart?

Difficulty: Medium
86) Differentiate between explicit knowledge and tacit knowledge. Provide examples of each.

Learning Objective 1: LO 3.5 Describe the benefits and challenges of implementing knowledge
management system in organizations.
Difficulty: Medium
87) Describe the six steps of the knowledge management system cycle.

Learning Objective 1: LO 3.5 Describe the benefits and challenges of implementing knowledge
management system in organizations.
Difficulty: Medium

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Package Title: Testbank Questions

Course Title: MIS 3e

Question Type: True/False

1) Managing data effectively is inexpensive for organizations.

Title: Testbank Question 3.01

Title: Testbank Question 3.02

3) It is easy to manage all the data coming into an organization.

Title: Testbank Question 3.03

4) Increasing amounts of external data need to be considered in making organizational

Title: Testbank Question 3.04

5) Data rot refers to the quality of the data itself.

Title: Testbank Question 3.05

6) Master data are generated and captured by operational systems.

Title: Testbank Question 3.06

7) It is important for applications and data to be dependent on each other.

Title: Testbank Question 3.07

Title: Testbank Question 3.08

9) An entity is a person, place, thing, or event about which information is maintained.

Title: Testbank Question 3.09

10) An attribute is any characteristic or quality that describes a particular entity.

Title: Testbank Question 3.10

Title: Testbank Question 3.11

12) You would be an instance of your university’s STUDENT class.

Title: Testbank Question 3.12

Title: Testbank Question 3.13

Title: Testbank Question 3.14

15) Big Data is easy to define.

Title: Testbank Question 3.15

Title: Testbank Question 3.16

Title: Testbank Question 3.17

18) Big data can only come from a trusted source.

Title: Testbank Question 3.18

Title: Testbank Question 3.19

Title: Testbank Question 3.20

21) An organization’s data warehouse generally maintains its operational data.

Title: Testbank Question 3.21

Title: Testbank Question 3.22

Title: Testbank Question 3.23

Title: Testbank Question 3.24

Title: Testbank Question 3.25

Title: Testbank Question 3.26

Title: Testbank Question 3.27

Title: Testbank Question 3.28

Title: Testbank Question 3.29

Question Type: Multiple Choice

Title: Testbank Question 3.30

a) Flurry’s software helps advertisers by creating an identifying and anonymous ID for

Title: Testbank Question 3.31

32) Which of the following has the broadest impact on an organization?

a) Decisions about hardware.

Title: Testbank Question 3.32

a) New systems are developed.

Title: Testbank Question 3.33

a) Defines how the city’s network works.

Title: Testbank Question 3.34

Title: Testbank Question 3.35

36) _____ is a formal approach to managing data consistently across an entire

Title: Testbank Question 3.36

Question Type: Multiple Select