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Business Intelligence

The document discusses various aspects of business intelligence, including predictive, descriptive, and prescriptive models used in retail and logistics to enhance operational efficiency and customer satisfaction. It poses multiple questions related to data inputs for demand forecasting, ethical principles in BI, and the structured analysis cycle for effective decision-making. Additionally, it covers the web analytics process, challenges in analyzing large datasets, and the importance of predictive analytics in financial forecasting.

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skvidhya04
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0% found this document useful (0 votes)
55 views9 pages

Business Intelligence

The document discusses various aspects of business intelligence, including predictive, descriptive, and prescriptive models used in retail and logistics to enhance operational efficiency and customer satisfaction. It poses multiple questions related to data inputs for demand forecasting, ethical principles in BI, and the structured analysis cycle for effective decision-making. Additionally, it covers the web analytics process, challenges in analyzing large datasets, and the importance of predictive analytics in financial forecasting.

Uploaded by

skvidhya04
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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3/11/25, 8:49 PM Business intelligence - Course Discussion Board / 22AM034 BUSINESS INTELLIGENCE 24-25 - BITCommunity

Business intelligence

GAYATHRIDEVI_M 1d

1. Question
A retail company is striving to enhance its operational efficiency and boost customer
satisfaction by implementing advanced
mathematical models in its business intelligence system. One of the key models the
company uses is a Predictive Model for
demand forecasting. This model helps the company predict future demand patterns
and optimize inventory levels, ensuring
better service and reduced costs.
a) Identify types of data inputs that might be required for accurate predictions when
using a Predictive Model for
demand forecasting.
[Hint: Consider factors that directly or indirectly affect customer behavior.]
b) From the scenario, Indicate whether the following statement is false with
justification:
A Predictive Model for demand forecasting in a retail company solely relies on
customer demographics for accurate demand
predictions.
2. Question
Match the given statements with the correct description and example based on
mathematical models.
MATHEMATICAL MODEL DESCRIPTION EXAMPLES
A1. Predictive models are used in
business intelligence.

B1. These models analyze data and suggest


the best course of action to achieve business
goals.

C1. Customer Behavior analysis,


Report generation

A2. Descriptive models summarize


historical data.

B2. They focus on providing insights into


past performance without predicting future
events.

C2. Sales forecasting, Demand


forecasting

A3. Prescriptive models recommend


Skip to main content
optimal actions.

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3/11/25, 8:49 PM Business intelligence - Course Discussion Board / 22AM034 BUSINESS INTELLIGENCE 24-25 - BITCommunity

B3. These models use historical data to


forecast future trends and behavior.

C3. Inventory optimization, Pricing


strategies

3. Question
Assertion (A): In business intelligence, raw customer data such as purchase dates,
product IDs, and transaction amounts, when
processed and organized into meaningful reports, becomes actionable knowledge
for business decision-making.
Reason (R): Information, when analyzed and understood in context, helps in
formulating strategies, but it is not directly
applicable to decision-making until it is further processed into actionable
knowledge.
Select the correct option and justify your answer:
a) Both Assertion and Reason are correct, and Reason is the correct explanation for
Assertion.
b) Both Assertion and Reason are correct, but Reason is not the correct explanation
for Assertion.
c) Assertion is correct, but Reason is incorrect.
d) Assertion is incorrect, but Reason is correct.

4. Question
A global corporation uses business intelligence (BI) tools to analyze customer data
and optimize marketing strategies. While
these tools offer valuable insights, they also raise ethical concerns, such as
protecting customer privacy, ensuring data accuracy,
and avoiding biases in decision-making. The BI team must adhere to ethical
guidelines to build trust and maintain legal
compliance.
Based on the scenario, predict the missing ethical principles guiding the use of
business intelligence tools. Identify the remaining
blanks to complete the framework.
Identified principles:

5. Transparency

6. Accountability

7. Fairness

8.

9.

[Hint: Consider principles related to respecting user rights and preventing misuse of
data.]
5. Question

A retail company wants to enhance its decision-making capabilities using a business


Skip to main content
intelligence (BI) system. The team follows a

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structured BI analysis cycle, ensuring that each phase is addressed systematically. From
identifying business requirements to
generating actionable insights, the cycle helps them improve their operational efficiency.
This structured approach enables the
company to forecast sales, optimize inventory, and enhance customer satisfaction.
i) Below are steps in the business intelligence analysis cycle presented out of order.
Rearrange the steps to reflect the correct
sequence for effective BI analysis:

1. Present findings through dashboards or reports to help stakeholders make data-


driven decisions.
2. Analyze the cleaned and prepared data to derive trends, patterns, or predictions.
3. Identify and define the specific business problems or questions to address.
4. Collect relevant data from different sources and ensure it is integrated and cleaned
for analysis.

(4 Marks)

ii) Assertion (A): Presenting findings through dashboards or reports is the final step of the
BI analysis cycle.
Reason (R): Analysis of cleaned and prepared data helps derive trends, patterns, or
predictions, forming the basis for actionable
insights.
Select the correct option and justify your answer:
a) Both Assertion and Reason are correct, and the Reason is the correct explanation of
the Assertion.
b) Both Assertion and Reason are correct, but the Reason is not the correct explanation of
the Assertion.
c) The Assertion is correct, but the Reason is incorrect.
d) Both Assertion and Reason are incorrect.

(2 Marks)

6. Question
A logistics company is using various mathematical models to optimize its operations.
The company uses these models to solve
complex problems, improve decision-making, and enhance efficiency across its
departments.
Based on the above scenario, find True statements from the list below.
a) Descriptive models in business intelligence help predict future trends based on
past data.
b) Predictive models analyze historical data to provide actionable recommendations
for future actions.
c) Prescriptive models focus on recommending the best course of action to optimize
business operations.
d) Optimization models help in understanding the patterns in past operational data,
such as delivery times and customer orders.
e) Descriptive models are primarily used to suggest the most efficient course of
action based on available data.
f) Predictive
Skip to models aim to forecast future trends based on historical patterns.
main content
g) Prescriptive models use optimization techniques and simulation to recommend
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actionable strategies.
h) Optimization models are exclusively used for making predictions about future
operations.
i) Descriptive models provide a summary and understanding of historical data
without making predictions.
j) Prescriptive models are the same as descriptive models, as both focus only on
historical data analysis.

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3/11/25, 8:49 PM Introduction to data mining and data warehousing - Course Discussion Board / 22AM034 BUSINESS INTELLIGENCE 24-25 - …

Introduction to data mining and data warehousing

GAYATHRIDEVI_M 1d

7. Question
An online retail company aims to enhance its website performance and user
experience. To achieve this, the marketing team
uses the Web Analytics Process to monitor and improve customer interactions.

Figure: Web Anaytical Process

Predict the missing parts (1, 2, and 3) in the Web Analytics Process based on the scenario
provided.
[Options: Define business objectives, Build KPI (Key Performance Indicators), Build
reports, Analyze data, Segment
audience, Test and optimize, Implementation, Monitor performance]
8. Question
An e-commerce company is analyzing the performance of its website and wants to
monitor various metrics, such as traffic
sources, user behavior, conversion rates, and website performance. To make informed
decisions about improving their website’s
design and marketing strategy, they are considering a variety of web analytics tools. The
company has researched several tools
and shortlisted a list based on their features and functionalities.
From the following list of web analytics tools, identify the odd one out and justify the
reason based on their primary functionality:
a) Google Analytics
b) Adobe Analytics
c) SEMrush
d) Hotjar
9. Question
Below are 10 statements related to the text mining process. Identify valid statements and
provide justification .

1. Text mining is used exclusively for sentiment analysis.


2. Tokenization breaks text into smaller units like words or sentences.
3. Text preprocessing involves the collection of raw data from sources like emails and
surveys.
4. The main goal of text mining is to convert unstructured data into structured data for
easier analysis.
5. Sentiment analysis is a type of text preprocessing technique.
6. Text mining is only useful for processing textual data, not numerical or image data.
7. Trend identification helps to find patterns in customer sentiment over time.
8. Text representation is the step where the text is transformed into numerical or
structured formats.
Skip to main content

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3/11/25, 8:49 PM Introduction to data mining and data warehousing - Course Discussion Board / 22AM034 BUSINESS INTELLIGENCE 24-25 - …

9. Evaluation and interpretation involve extracting insights from the data, not from the
final processed text.
10. Text mining always involves the manual categorization of text data before analysis.
11. Question
An e-commerce platform analyzes its transactional data to identify patterns in
customer purchasing behavior. To evaluate the
effectiveness of these patterns, the data science team uses association rule analysis.
You are given the following information from the transactional data:
The total number of transactions in the dataset is 1,000. Item A and Item B appear
together in 200 transactions. Item A appears
in 400 transactions. Item B appears in 300 transactions. Using this data, calculate
the following metrics:
a) Support for the association rule A⇒B
b) Confidence for the association rule A⇒B
c) Lift for the association rule A⇒B
[Hint: To calculate these metrics, follow these steps:
Support: Find the proportion of transactions that contain both items.
Confidence: Find the probability of purchasing Item B given that Item A is already
purchased.
Lift: Compare the actual likelihood of purchasing B when A is bought with the
general likelihood of buying B.]
12. Question
Assertion:
Association rule analysis is primarily used for clustering data based on similarities,
which helps in identifying distinct customer
segments for targeted marketing.
Reason:
The key metrics for association rule analysis, such as support, confidence, and lift,
are used to measure the strength of
relationships in clustered data, rather than in itemset-based data.
Select the correct answer and Justify:
a) Both Assertion and Reason are correct, and the Reason is the correct explanation
of the Assertion.
b) Both Assertion and Reason are correct, but the Reason is not the correct
explanation of the Assertion.
c) The Assertion is correct, but the Reason is incorrect.
d) Both Assertion and Reason are incorrect.
13. Question

A retail company operates an online platform that tracks customer transactions, including
the products customers are buying and
their browsing behavior. The company wants to improve its product recommendation
system and customer segmentation by
analyzing transactional data using association rule mining and cluster analysis.
i) The company aims to enhance the product recommendation system by identifying
patterns of items frequently bought
together. Predict challenges the company might face when analyzing large transactional
datasets.
Skip to
[Hint: mainanalyzing
When contentlarge transactional datasets, challenges typically arise due to data
volume, noise, and complexity.]
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(2 Marks)
ii) The following steps describe how a Product Recommendation System works. However,
they are not in the correct order.
Rearrange them in the correct sequence.
Statements:
A) The system analyzes customer behavior, purchase history, and preferences using
machine learning algorithms.
B) The system collects data from various sources, such as browsing history, purchase
records, and customer reviews.
C) Based on the analysis, relevant product recommendations are generated for each user.
D) The recommendations are displayed to users on the website, app, or through
personalized emails.

(4 Marks)

https://discourse.bitsathy.ac.in/t/introduction-to-data-mining-and-data-warehousing/63392?u=gayathridevi_m 3/3
3/11/25, 8:50 PM Introduction to big data analytics - Course Discussion Board / 22AM034 BUSINESS INTELLIGENCE 24-25 - BITCommunity

Introduction to big data analytics

GAYATHRIDEVI_M 1d

13. Question
A). A Batch of data processing job running on HDFS, one of the DataNodes in the
cluster fails unexpectedly. Your data is critical
to the business and needs to be available at all times for analysis.
Based on the scenario, Predict two key challenges from the four given statements:
a) The entire dataset is permanently lost due to DataNode failure.
b) Job performance may degrade or experience delays due to data unavailability.
c) HDFS replication ensures data availability, but recovery might take some time.
d) The NameNode also fails, leading to complete cluster failure.
B). State True or False for the below statement and Justify.
1.If a DataNode fails, the NameNode ensures that data stored on that node is still
available by replicating the missing blocks to
other DataNodes.
14. Question
You are a data scientist at a financial analytics company, tasked with predicting
future gold prices to assist investors in making
informed decisions. The gold market is influenced by several factors, including
inflation, currency fluctuations, geopolitical
events, and other economic indicators.
Rearrange the below steps in an appropriate order based on the scenario for
investment opportunities .
1.Collect Data: Gather historical gold prices and relevant market indicators (e.g.,
inflation rates, currency values, geopolitical
events).
2.Select Model: Choose a predictive model (e.g., ARIMA, LSTM, or Random Forest)
suitable for time series or trend analysis.
3.Preprocess Data: Clean and normalize data, handle missing values, and engineer
features (e.g., moving averages, volatility).
4.Predict and Monitor: Generate forecasts for gold price movements and adjust
model parameters based on new data.
5.Train and Test: Split data, train the model on past trends, and validate using recent
data to assess accuracy.
15. Question
Rearrange the following steps in the correct sequence to explain the process of
Predictive Analytics:
A: Apply predictive models, such as regression or machine learning algorithms, to
forecast future trends or outcomes.
B: Clean and preprocess historical data to ensure it is structured and ready for
analysis.
C: Collect relevant data from internal and external sources, including historical
Skip to main and
records content
real-time data.

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3/11/25, 8:50 PM Introduction to big data analytics - Course Discussion Board / 22AM034 BUSINESS INTELLIGENCE 24-25 - BITCommunity

D: Evaluate the accuracy of the model by testing it against known data or a


validation dataset.
E: Interpret the results of the analysis and make decisions or recommendations
based on the predictions.
16. Question
A leading e-commerce company processes massive amounts of customer
transactions daily. To ensure seamless data
management and fault tolerance, they use Hadoop Distributed File System (HDFS).
Identify the correct HDFS techniques(Replication, WORM, Block storage , Fault
tolerance , throughput) that align with the
following descriptions.

a). The system stores multiple copies of transaction logs across different nodes to prevent
data loss.
b). Large product catalog files are divided into smaller parts for efficient storage and
retrieval.
c). If a node storing order details fails, data is still accessible from other replicated nodes.
17. Question
Find out the below predictive analytics techniques with suitable example based on the
hint.[Hint :Decision tree, linear
regression, weather forecasting , ARIMA model ,neural network ].
1.Regression analysis.
2.Time series forecasting.
3.Machine learning.
18. Question
A supermarket chain wants to analyze its historical sales data to understand customer
purchasing behavior, identify trends, and
improve business strategies. The company uses dashboards, summary statistics, and data
visualization techniques to extract
insights from its data.
Predict whether the following statements are true or false based on the business
strategies and justify your answer:
a) Descriptive analytics is primarily used to predict future sales trends based on historical
data.
b)Creating a monthly sales report that shows revenue by product category is an example
of descriptive analytics.
c)Descriptive analytics does not involve decision-making but provides summarized
insights to help businesses make informed
choices.
d)A heatmap showing peak shopping hours in a store is an example of descriptive
analytics.

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