Understanding Business Intelligence

What is business intelligence (BI)?

• A strategy for reducing operational costs

• Business intelligence (BI) is the process of analyzing data to support better business decision-making.

• A software for managing employee schedules

• A method for increasing sales revenue

Name three key components of business intelligence.

• Data warehousing, data mining, reporting tools

• Supply chain management

• Customer relationship management

• Financial forecasting

How does data warehousing relate to business intelligence?

• Data warehousing is unrelated to data analysis and reporting.

• Data warehousing is only used for data storage without analysis.

• Data warehousing provides the structured data foundation that business intelligence tools use to analyze and generate insights.

• Business intelligence tools do not require any data structure.

What role does data visualization play in BI?

• Data visualization plays a crucial role in BI by simplifying data interpretation and enabling better decision-making.

• Data visualization complicates data analysis and hinders decision-making.

• Data visualization is irrelevant to BI and has no impact on outcomes.

• Data visualization only serves aesthetic purposes without aiding in data understanding.

Explain the difference between descriptive and predictive analytics.

• Descriptive analytics explains past data; predictive analytics forecasts future events.

• Descriptive analytics is used for data visualization; predictive analytics is used for data storage.

• Descriptive analytics focuses on real-time data; predictive analytics is only for static data.

• Descriptive analytics predicts future trends; predictive analytics analyzes historical data.

What is a dashboard in the context of business intelligence?

• A dashboard is a software used for data entry and storage.

• A dashboard is a visual interface that displays key metrics and data visualizations for business performance monitoring.

• A dashboard is a type of financial report for tax purposes.

• A dashboard is a tool for managing employee schedules.

How can BI tools help in decision-making processes?

• BI tools complicate decision-making with excessive data noise.

• BI tools are primarily used for data storage and management.

• BI tools only provide historical data without analysis.

• BI tools enhance decision-making by providing data-driven insights, visualizations, and real-time analysis.

What are some common BI tools used in the industry?

• Google Analytics

• Tableau, Power BI, QlikView, Looker

• Excel

• SPSS

Define the term 'data mining' as it relates to BI.

• Data mining is the process of analyzing large datasets to discover patterns and insights that inform business decisions in BI.

• Data mining refers to the collection of data without analysis.

• Data mining is the technique of visualizing data in charts and graphs.

• Data mining is the process of storing data in a database for future use.

Why is data quality important in business intelligence?

• Data quality is important in business intelligence because it ensures accurate and reliable insights for better decision-making.

• Poor data quality leads to faster decision-making.

• High data quality increases operational costs.

• Data quality is irrelevant for business growth.