DAC DAC Business Intelligence & Analytics Strategy 1 — Questions and Answers
Question 1: What is a Key Performance Indicator (KPI) in business analytics?
- A type of database schema used in data warehouses
- A measurable value that demonstrates how effectively an organization is achieving key business objectives (Correct answer)
- A visualization technique for comparing multiple datasets
- An algorithm used in predictive analytics
Correct answer: A measurable value that demonstrates how effectively an organization is achieving key business objectives
KPIs are quantifiable metrics tied to strategic business objectives that help organizations track performance and measure progress toward goals.
Question 2: What distinguishes descriptive analytics from predictive analytics?
- Descriptive analytics uses machine learning; predictive analytics uses SQL
- Descriptive analytics summarizes historical data; predictive analytics forecasts future outcomes (Correct answer)
- Descriptive analytics is more accurate than predictive analytics
- Predictive analytics only works with structured data
Correct answer: Descriptive analytics summarizes historical data; predictive analytics forecasts future outcomes
Descriptive analytics answers 'what happened?' by summarizing past data, while predictive analytics answers 'what will happen?' using statistical models and historical patterns.
Question 3: What is a data warehouse in a business intelligence context?
- A physical server room where databases are stored
- A subject-oriented, integrated repository of historical data optimized for analytical queries (Correct answer)
- A real-time streaming data pipeline
- A tool for creating interactive dashboards
Correct answer: A subject-oriented, integrated repository of historical data optimized for analytical queries
A data warehouse is a centralized repository of integrated, historical data from multiple sources, designed and optimized for analytical reporting and decision-making.
Question 4: Which of the following is an example of prescriptive analytics?
- A report showing last quarter's sales by region
- A forecast predicting next month's customer churn rate
- An optimization model recommending the best pricing strategy to maximize revenue (Correct answer)
- A dashboard displaying current website traffic
Correct answer: An optimization model recommending the best pricing strategy to maximize revenue
Prescriptive analytics goes beyond prediction to recommend specific actions, often using optimization algorithms to identify the best course of action.
Question 5: What is the purpose of a data mart in a BI architecture?
- To store raw unprocessed data before ETL
- To provide a department-specific subset of a data warehouse focused on a particular subject area (Correct answer)
- To replace the data warehouse for smaller organizations
- To serve as a real-time operational database
Correct answer: To provide a department-specific subset of a data warehouse focused on a particular subject area
A data mart is a focused subset of a data warehouse designed to serve the analytical needs of a specific business department or subject area (e.g., sales, finance).
Question 6: In BI, what does a star schema consist of?
- Multiple interconnected fact tables with no dimension tables
- A central fact table surrounded by denormalized dimension tables (Correct answer)
- A normalized relational schema with many foreign key joins
- A flat file structure without primary keys
Correct answer: A central fact table surrounded by denormalized dimension tables
A star schema features a central fact table containing measurable business events connected to denormalized dimension tables that provide descriptive context.
DAC DAC Business Intelligence & Analytics Strategy 1
What is a Key Performance Indicator (KPI) in business analytics?