Test bank for using MIS 3rd edition by kroenke

Full file at />Using MIS, 3e (Kroenke)
Chapter 1 The Importance of MIS
1.1 True/False Questions
1) Moore's Law states that the speed of a computer doubles every 18 months.
Answer: FALSE
Diff: 1 Page Ref: 4
AACSB: Use of IT
Study Question: Study Question 1
2) The fact that the cost of data communications and data storage has essentially come down to
zero is an example of Moore's Law in action.
Answer: TRUE
Diff: 1 Page Ref: 4
AACSB: Use of IT
Study Question: Study Question 1
3) The emergence of YouTube could be considered a consequence of Moore's Law.
Answer: TRUE
Diff: 1 Page Ref: 4
AACSB: Reflective thinking
Study Question: Study Question 1
4) One consequence of Moore's Law is that routine skills will be internalized by high-value
organizations.
Answer: FALSE
Diff: 2 Page Ref: 5
AACSB: Reflective thinking
Study Question: Study Question 1
5) According to the RAND study cited in the text, strong nonroutine cognitive skills are the most
important marketable skills in the new millennium.
Answer: TRUE
Diff: 2 Page Ref: 6
AACSB: Analytic skills
Study Question: Study Question 1

6) While those students majoring in finance and information systems are expected to have only
routine cognitive skills, those in marketing or information systems need to develop strong nonroutine cognitive skills.
Answer: FALSE
Diff: 2 Page Ref: 6
AACSB: Analytic skills
Study Question: Study Question 1

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Full file at />7) Abstract reasoning is the ability to make and manipulate models.
Answer: TRUE
Diff: 1 Page Ref: 6
AACSB: Analytic skills
Study Question: Study Question 1
8) During a feedback session, Symonds tells his manager that he is finding it difficult to trace the
mean value of the data from the consumer survey. Symonds seems to be lacking systems
thinking skills.
Answer: FALSE
Diff: 3 Page Ref: 6, 7
AACSB: Reflective thinking
Study Question: Study Question 1
9) Sheila, the operations manager at a software development firm, finds from Reuben's
teammates that he rarely asks for feedback and when provided, does not seem to respond
positively to it. Reuben seems to be lacking collaboration skills.
Answer: TRUE
Diff: 3 Page Ref: 6, 7
AACSB: Reflective thinking
Study Question: Study Question 1
10) Fear of failure is one of the main reasons for the lack of systems thinking among employees.

Answer: FALSE
Diff: 2 Page Ref: 7
AACSB: Reflective thinking
Study Question: Study Question 1
11) Being able to connect the rise in sugar prices to the supply cap of petrol products by OPEC
countries is an example of abstract reasoning.
Answer: FALSE
Diff: 2 Page Ref: 6
AACSB: Reflective thinking
Study Question: Study Question 1
12) Abstract reasoning is an example of routine cognitive skills.
Answer: FALSE
Diff: 2 Page Ref: 6
AACSB: Reflective thinking
Study Question: Study Question 1
13) Effective communication is an example of routine non-cognitive skills.
Answer: FALSE
Diff: 2 Page Ref: 6
AACSB: Reflective thinking
Study Question: Study Question 1

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Full file at />14) Surveys indicate the single most important skill for effective collaboration is the ability to
interpret nonverbal communication.
Answer: FALSE
Diff: 2 Page Ref: 7
AACSB: Analytic skills
Study Question: Study Question 1

15) Wesley is quite popular in the office for being nice to others. He seems to have effective
collaboration skills.
Answer: FALSE
Diff: 2 Page Ref: 7
AACSB: Reflective thinking
Study Question: Study Question 1
16) Systems thinking is when you develop ideas and plans with others.
Answer: FALSE
Diff: 1 Page Ref: 7
AACSB: Analytic skills
Study Question: Study Question 1
17) In a volatile business scenario, professionals should not allow themselves to be limited by
fear of failure.
Answer: TRUE
Diff: 2 Page Ref: 7
AACSB: Reflective thinking
Study Question: Study Question 1
18) An information system is a group of components that interact to produce information.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Use of IT
Study Question: Study Question 2
19) The three key elements in the definition of MIS are: development and use, information
systems, and business goals and objectives.
Answer: TRUE
Diff: 1 Page Ref: 8
AACSB: Analytic skills
Study Question: Study Question 2
20) There are six fundamental components in every information system.
Answer: FALSE

Diff: 2 Page Ref: 8
AACSB: Use of IT
Study Question: Study Question 2

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Full file at />21) The words, sentences, and paragraphs in your status report are examples of the "data"
component of an information system.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Analytic skills
Study Question: Study Question 2
22) Management information systems is defined as the development and use of information
systems that help businesses achieve their goals and objectives.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Use of IT
Study Question: Study Question 2
23) The number of components of an information system increases with increasing system
complexity.
Answer: FALSE
Diff: 2 Page Ref: 8-9
AACSB: Analytic skills
Study Question: Study Question 3
24) One needs to have hardware or computer programming skills to build or use an information
system.
Answer: FALSE
Diff: 2 Page Ref: 9
AACSB: Analytic skills

Study Question: Study Question 3
25) To correctly be called an information system, a computer of some sort must be involved.
Answer: FALSE
Diff: 2 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2
26) Organizations do not expect accounting or marketing majors to know how to build
information systems.
Answer: FALSE
Diff: 2 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2
27) Even if you are not technically qualified, you are still required to help in the development
project of information systems by specifying the system requirements.
Answer: TRUE
Diff: 2 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 3
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Full file at />28) The components of the information systems framework are symmetrical.
Answer: TRUE
Diff: 1 Page Ref: 10
AACSB: Analytic skills
Study Question: Study Question 3
29) A compelling reason for companies to develop an information system is to avoid "falling
behind the technology curve."
Answer: FALSE
Diff: 2 Page Ref: 10

AACSB: Reflective thinking
Study Question: Study Question 2
30) Buying a computer, working with a spreadsheet, or creating a Web page are the three major
instances of an information systems implementation.
Answer: FALSE
Diff: 2 Page Ref: 10
AACSB: Reflective thinking
Study Question: Study Question 3
31) In the information systems framework, data is the bridge between the computer side on the
left and the human side on the right.
Answer: TRUE
Diff: 2 Page Ref: 10
AACSB: Analytic skills
Study Question: Study Question 3
32) In an information systems model, the software and procedure components are both sets of
instructions.
Answer: TRUE
Diff: 2 Page Ref: 11
AACSB: Analytic skills
Study Question: Study Question 3
33) Information systems have globally standardized allocations for the amount of work that is
moved from the human side to the computer side.
Answer: FALSE
Diff: 2 Page Ref: 11
AACSB: Analytic skills
Study Question: Study Question 3
34) Hardware is the most important component in the component framework of information
systems.
Answer: FALSE
Diff: 2 Page Ref: 11

AACSB: Use of IT
Study Question: Study Question 3
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Full file at />35) When you consider the components of an information system, the last component includes
you.
Answer: TRUE
Diff: 1 Page Ref: 11
AACSB: Analytic skills
Study Question: Study Question 3
36) A perfect information system is one in which the quality of your thinking is not important to
the quality of information produced.
Answer: FALSE
Diff: 2 Page Ref: 11
AACSB: Reflective thinking
Study Question: Study Question 3
37) Substantial cognitive research has shown that although you cannot increase your basic IQ,
you can dramatically increase the quality of your thinking.
Answer: TRUE
Diff: 2 Page Ref: 11
AACSB: Analytic skills
Study Question: Study Question 3
38) A system that consists only of a file of email addresses and an email program is a low-tech
system with considerable work still left for human intervention.
Answer: TRUE
Diff: 2 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 3
39) The five-component framework is limited to assessing the scope of existing systems and

needs to be revised when assessing the scope of new systems.
Answer: FALSE
Diff: 2 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 3
40) Creating new databases or changing the structure of existing databases is more difficult than
obtaining or developing new programs.
Answer: TRUE
Diff: 2 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 3
41) In a study of daybreak timings across the world, the fact that the sun rose this morning at
6:25 a.m. in Atlanta is an example of data.
Answer: TRUE
Diff: 2 Page Ref: 12
AACSB: Reflective thinking
Study Question: Study Question 4
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Full file at />42) Data is the knowledge derived from information.
Answer: FALSE
Diff: 1 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 4
43) What is data to one person may be information to another.
Answer: TRUE
Diff: 2 Page Ref: 13
AACSB: Reflective thinking
Study Question: Study Question 4

44) The average wait time for a customer at a call center is an example of data.
Answer: FALSE
Diff: 1 Page Ref: 13
AACSB: Reflective thinking
Study Question: Study Question 4
45) When data is presented within a meaningful context, it becomes information.
Answer: TRUE
Diff: 2 Page Ref: 13
AACSB: Analytic skills
Study Question: Study Question 4
46) The information that is the output of one process can be viewed as a data input to another
process.
Answer: TRUE
Diff: 2 Page Ref: 13
AACSB: Reflective thinking
Study Question: Study Question 4
47) A future user of information systems has to rely on information if it appears in the context of
a Web page in a well-formatted report.
Answer: FALSE
Diff: 1 Page Ref: 16
AACSB: Analytic skills
Study Question: Study Question 5
48) An important thing to remember when you begin to use a new information system is to begin
with skepticism.
Answer: TRUE
Diff: 1 Page Ref: 16
AACSB: Analytic skills
Study Question: Study Question 5

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Full file at />49) When you participate in the development of an IS, timeliness will be part of the requirements
you will ask for.
Answer: TRUE
Diff: 1 Page Ref: 16
AACSB: Analytic skills
Study Question: Study Question 5
50) Information relevance is an important characteristic of good information.
Answer: TRUE
Diff: 1 Page Ref: 17
AACSB: Analytic skills
Study Question: Study Question 5
51) A good information system is one that provides the user with as much information as it can
gather.
Answer: FALSE
Diff: 2 Page Ref: 17
AACSB: Analytic skills
Study Question: Study Question 5
52) The cost of gathering information should be analyzed just like any other corporate asset.
Answer: TRUE
Diff: 2 Page Ref: 17
AACSB: Analytic skills
Study Question: Study Question 5
53) Barely sufficient information is a handicap in decision-making as today's business decisions
require analysis of large amounts of data.
Answer: FALSE
Diff: 1 Page Ref: 17
AACSB: Reflective thinking
Study Question: Study Question 5

54) The higher you rise in an organization the less information you will need to work with.
Answer: FALSE
Diff: 1 Page Ref: 17
AACSB: Reflective thinking
Study Question: Study Question 5
55) Information is worth its cost when the cost of acquiring it breaks even with the returns
expected.
Answer: FALSE
Diff: 2 Page Ref: 17
AACSB: Analytic skills
Study Question: Study Question 5

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Full file at />56) For information to be relevant, there must be an appropriate relationship between the cost of
the information and its value.
Answer: FALSE
Diff: 2 Page Ref: 17
AACSB: Analytic skills
Study Question: Study Question 5
57) Information technology and information systems are synonymous.
Answer: FALSE
Diff: 2 Page Ref: 18
AACSB: Analytic skills
Study Question: Study Question 6
58) Information systems drive the development of information technology.
Answer: FALSE
Diff: 2 Page Ref: 18
AACSB: Reflective thinking

Study Question: Study Question 6
59) Components of information systems are too abstract to be subjected to the same financial
analyses to which other assets are subjected.
Answer: FALSE
Diff: 3 Page Ref: 18
AACSB: Analytic skills
Study Question: Study Question 6
60) You can buy information technology, but you can never buy an information system.
Answer: TRUE
Diff: 2 Page Ref: 18
AACSB: Use of IT
Study Question: Study Question 6
1.2 Multiple Choice Questions
1) Moore's Law states that the number of transistors per square inch on an integrated chip
doubles every ________ months.
A) 6
B) 12
C) 18
D) 24
Answer: C
Diff: 1 Page Ref: 4
AACSB: Use of IT
Study Question: Study Question 1

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Full file at />2) Because of Moore's Law, the cost of data communications and data storage is essentially zero.
The growth of which of the following is a consequence of this?
A) LinkedIn

B) direct marketing
C) Windows Vista
D) Six Sigma methodologies
Answer: A
Diff: 3 Page Ref: 4
AACSB: Use of IT
Study Question: Study Question 1
3) ________ is the ability to make and manipulate models.
A) Abstract reasoning
B) Structural logic
C) Systems thinking
D) Experimentation
Answer: A
Diff: 2 Page Ref: 6
AACSB: Analytic skills
Study Question: Study Question 1
4) The four component skills necessary to develop strong nonroutine cognitive skills include all
of the following except:
A) abstract reasoning.
B) systems thinking.
C) collaboration.
D) computer programming skills.
Answer: D
Diff: 3 Page Ref: 6-7
AACSB: Analytic skills
Study Question: Study Question 1
5) ________ refers to the ability to model system components and show how the component
inputs and outputs relate to one another.
A) Abstract reasoning
B) Systems thinking

C) Dynamic correlation
D) Operational logic
Answer: B
Diff: 2 Page Ref: 7
AACSB: Analytic skills
Study Question: Study Question 1

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Full file at />6) Mae proposes a new social networking model to her boss. She illustrates the model on the
whiteboard and describes how this could cater to a growing demand among Internet users. She
also explains how their firm could profitably serve this need. Mae is exhibiting ________ skills.
A) leadership
B) collaboration
C) systems thinking
D) experimentation
Answer: C
Diff: 2 Page Ref: 7
AACSB: Reflective thinking
Study Question: Study Question 1
7) "Is it too weird for the market?" is a question asked by someone who is probably weak in
________ skills.
A) abstract reasoning
B) experimentation
C) systems thinking
D) modeling
Answer: B
Diff: 2 Page Ref: 7
AACSB: Reflective thinking

Study Question: Study Question 1
8) ________ is when you create and test promising new alternatives consistent with available
resources.
A) Alternative reasoning
B) Systems thinking
C) Maximization
D) Experimentation
Answer: D
Diff: 2 Page Ref: 7
AACSB: Analytic skills
Study Question: Study Question 1
9) Which of the following statements about collaboration is true?
A) Effective collaboration is predominantly about being nice.
B) The most critical skill for effective collaboration is to give and receive critical feedback.
C) Collaboration is what helps you to model the components of the system.
D) Collaboration aims to connect the inputs and outputs among system components.
Answer: B
Diff: 3 Page Ref: 7
AACSB: Reflective thinking
Study Question: Study Question 1

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Full file at />10) Making a careful and reasoned analysis of an opportunity, envisioning potential products or
solutions or applications of technology, and then developing those ideas that seem to have the
most promise, consistent with the resources you have is an example of ________.
A) abstract reasoning
B) collaboration
C) systems thinking

D) experimentation
Answer: D
Diff: 3 Page Ref: 7
AACSB: Analytic skills
Study Question: Study Question 1
11) Which of the following is not consistent with a proper exercise of experimentation?
A) making a careful and reasoned analysis of an opportunity
B) envisioning potential products or solutions or applications of technology
C) providing a corpus fund for testing all ideas generated
D) developing promising ideas consistent with the resources you have
Answer: C
Diff: 2 Page Ref: 7
AACSB: Reflective thinking
Study Question: Study Question 1
12) Which of the following is not part of the definition of management information systems?
A) development and use
B) organizational hierarchy
C) information systems
D) business goals and objectives
Answer: B
Diff: 2 Page Ref: 8
AACSB: Reflective thinking
Study Question: Study Question 2
13) A word processing program is an example of:
A) hardware.
B) software.
C) data.
D) a procedure.
Answer: B
Diff: 1 Page Ref: 8

AACSB: Use of IT
Study Question: Study Question 2

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Full file at />14) Which of the following is an example of hardware?
A) a computer monitor
B) data in a USB drive
C) a spreadsheet
D) instructions encoded in RAM
Answer: A
Diff: 1 Page Ref: 8
AACSB: Use of IT
Study Question: Study Question 2
15) All of the following are components of an information system except:
A) software.
B) culture.
C) hardware.
D) procedures.
Answer: B
Diff: 2 Page Ref: 8
AACSB: Use of IT
Study Question: Study Question 2
16) Which of the following statements is true about information systems?
A) Computers have always been a part of the definition of information systems.
B) The number of components increases with the complexity of the information systems.
C) Hardware programmers and computer programmers are what it takes to build an IS.
D) An information system is an assembly of computers, programs, data, procedures, and people.
Answer: D

Diff: 2 Page Ref: 8-9
AACSB: Use of IT
Study Question: Study Question 2
17) The Windows 7 operating system is an example of the ________ component of an
information system.
A) software
B) hardware
C) data
D) procedure
Answer: A
Diff: 1 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2

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Full file at />18) A network router is an example of the ________ component of an information system.
A) software
B) hardware
C) data
D) procedure
Answer: B
Diff: 2 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2
19) A computer security protocol for logging in is an example of the ________ component of an
information system.
A) software
B) hardware

C) data
D) procedure
Answer: D
Diff: 2 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2
20) Customer numbers and their names are examples of the ________ component of an order
management information system.
A) software
B) data
C) procedure
D) people
Answer: B
Diff: 1 Page Ref: 9
AACSB: Use of IT
Study Question: Study Question 2
21) The music downloads from a music sharing site are examples of the ________ component of
an information system.
A) software
B) hardware
C) data
D) procedure
Answer: C
Diff: 2 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2

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Full file at />22) A wall calendar used to schedule a conference room's use is an example of a(n) ________.
A) software
B) information system
C) systems thinking
D) procedure
Answer: B
Diff: 1 Page Ref: 9
AACSB: Analytic skills
Study Question: Study Question 2
23) Which of the following is a proper justification for developing an information system?
A) for the sheer joy of exploring technology
B) to show that the company has a social networking presence
C) to help people in a business to achieve the goals and objectives of that business
D) to avoid the company from "falling behind the technology curve"
Answer: C
Diff: 2 Page Ref: 10
AACSB: Reflective thinking
Study Question: Study Question 2
24) Which of the following is a correct picture of the development and use of information
systems?
A) As a nontechnical employee, you need not know how to build information systems.
B) The primary responsibility of developing an IS rests with a programmer or a database
designer.
C) Being the primary user of the IS, you are not responsible for the ancillary functions.
D) As a businessperson, you should know the requirements of data and processes for the IS.
Answer: D
Diff: 2 Page Ref: 9-10
AACSB: Use of IT
Study Question: Study Question 2
25) A set of instructions for the computer is an example of the ________ component of an

information system.
A) hardware
B) procedure
C) database
D) software
Answer: D
Diff: 1 Page Ref: 10
AACSB: Analytic skills
Study Question: Study Question 2

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Full file at />26) A company's ________ serves as the instructions for how users may use and access the data.
A) mission
B) objectives
C) context
D) procedures
Answer: D
Diff: 2 Page Ref: 10
AACSB: Analytic skills
Study Question: Study Question 2
27) The ________ function(s) as the instructions for the hardware in an information system.
A) software
B) policies
C) database
D) procedures
Answer: A
Diff: 2 Page Ref: 10
AACSB: Analytic skills

Study Question: Study Question 3
28) The ________ functions as a bridge between the human side of the information system
components and the computer/automation side.
A) software
B) hardware
C) data
D) procedure
Answer: C
Diff: 2 Page Ref: 10
AACSB: Analytic skills
Study Question: Study Question 3
29) Which of the following statements correctly describes the five-component model of an
information system?
A) The software and procedure components are both sets of instructions.
B) The five components in the framework are asymmetrical.
C) The computer is the bridge between the data on the left and the human side on the right.
D) The process of automation is a process of moving work from the left side to the right.
Answer: A
Diff: 2 Page Ref: 10-11
AACSB: Analytic skills
Study Question: Study Question 3

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Full file at />30) The process of ________ moves work from people to computers.
A) automation
B) integration
C) management
D) operations

Answer: A
Diff: 2 Page Ref: 11
AACSB: Analytic skills
Study Question: Study Question 3
31) Consider a decision-making situation involving complex calculations and computations. The
decision could influence profits of your firm in a big way. Considering the impact of information
systems, which of the following will be the most important factor affecting the quality of the
decision?
A) hardware capability of the IS - to handle huge amounts of data at required speeds
B) software programs and algorithms that can produce error-free results
C) your thinking process and ability to interpret information
D) procedures that will impact the implementation of the decision
Answer: C
Diff: 2 Page Ref: 11
AACSB: Reflective thinking
Study Question: Study Question 3
32) Which of the following statements do not reflect effective decision making using information
systems (IS)?
A) Your mind and your thinking are the most important component in an IS.
B) The quality of your thinking is a large part of the quality of the information system.
C) You can change the way you have programmed your brain to work.
D) Having the perfect information system is key to effective decisions.
Answer: D
Diff: 2 Page Ref: 11
AACSB: Analytic skills
Study Question: Study Question 3
33) Which of the following is an example of a low-tech information system?
A) a customer support system that keeps track of the product issues
B) a file of email addresses and an email program
C) an inventory tracking system that produces reports every 24 hours

D) a payroll management system with upgradable features
Answer: B
Diff: 1 Page Ref: 11-12
AACSB: Use of IT
Study Question: Study Question 3

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Full file at />34) Drummer Inc. is a sports equipment provider with their chain of outlets across three states.
As part of their expansion strategy, Drummer Inc. decides to enter six more states while also
revising its existing organizational structure. In this context, which of the following will be the
least disruptive to the organization?
A) obtaining demographic data of the new markets
B) developing a CRM software for the new outlets
C) revising job descriptions, managing promotions, and lateral movements
D) developing a new roster for the newly implemented shift system
Answer: A
Diff: 2 Page Ref: 12
AACSB: Reflective thinking
Study Question: Study Question 3
35) Which of the following would be the most disruptive to the organization while implementing
an information system?
A) obtaining or developing new programs
B) creating new databases
C) changing procedures
D) changing reporting relationships
Answer: D
Diff: 3 Page Ref: 12
AACSB: Reflective thinking

Study Question: Study Question 3
36) Data is defined as:
A) information devoid of a purpose.
B) unbiased information.
C) uninterpreted facts.
D) recorded facts or figures.
Answer: D
Diff: 1 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 4
37) A ticket from L.A. to Denver costs $212. In a decision-making scenario, this would be an
example of:
A) data.
B) information.
C) fact.
D) knowledge.
Answer: A
Diff: 2 Page Ref: 12
AACSB: Reflective thinking
Study Question: Study Question 4

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Full file at />38) Information is ________ data.
A) grouped
B) technical
C) processed
D) contextual
Answer: C

Diff: 1 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 4
39) It is probably harder to make changes to the ________ of an information system than to the
databases itself.
A) software
B) hardware
C) context
D) procedures
Answer: D
Diff: 2 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 4
40) Which of the following actions would cause the most amount of organizational disruption?
A) creating new databases or changing the structure of existing databases
B) obtaining or developing new programs
C) changing procedures that require people to work in different ways
D) ordering new hardware and installing it
Answer: C
Diff: 3 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 4
41) Finding the average of individual values within a sample set is an example of obtaining
________ from ________.
A) a subset; a superset
B) information; data
C) knowledge; information
D) data; information
Answer: B
Diff: 2 Page Ref: 12-13

AACSB: Reflective thinking
Study Question: Study Question 4

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Full file at />42) Which of the following statements is not true about information?
A) Information is always understood in a context.
B) Information in one person's context is just a data point in another person's context.
C) Information is data presented in a meaningful context.
D) Information is always objective.
Answer: D
Diff: 2 Page Ref: 12-13, 16
AACSB: Reflective thinking
Study Question: Study Question 4
43) The most common definition of information is that it is:
A) knowledge derived from data.
B) data presented in a meaningful context.
C) processed data.
D) a difference that makes a difference.
Answer: A
Diff: 3 Page Ref: 13
AACSB: Analytic skills
Study Question: Study Question 4
44) Which of the following statements is most likely to justify the statement - One person's
information is another person's data?
A) two researchers finding vastly differing values for the same hypotheses
B) a student's GPA as seen by the student and the instructor
C) a child discussing NASCAR speeds with his father
D) a product defect as seen by the customer and the operations manager

Answer: D
Diff: 3 Page Ref: 13
AACSB: Reflective thinking
Study Question: Study Question 4
45) Which of the following statements is not correct regarding development and use of
information systems?
A) When the output of one system feeds a second system, context changes occur in the IS.
B) In the development of an IS, timeliness will be part of the requirements you will ask for.
C) The five-component framework can also be used when assessing the scope of new systems.
D) All information is equally good; there is no good or bad information.
Answer: D
Diff: 3 Page Ref: 13, 16
AACSB: Reflective thinking
Study Question: Study Question 4

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Full file at />46) Which of the following is not a characteristic of good information?
A) interchangeability
B) relevance
C) timeliness
D) accuracy
Answer: A
Diff: 1 Page Ref: 16
AACSB: Analytic skills
Study Question: Study Question 5
47) You run a chain of grocery retail outlets across the nation. Which of the following meets the
requirement of better information?
A) The store manager provides a daily sales report on regular brands with additional information

on kiosk sales and promotions.
B) The quality manager reports the daily returns and defects; detailing type of defects and
customer complaints regarding returns.
C) The Human Resource manager provides a report on retention rates of full-time employees
compared to temp staff.
D) The shift supervisor provides the consolidated daily login information of her store with
detailed employment profiles of repeat offenders.
Answer: C
Diff: 3 Page Ref: 16-17
AACSB: Reflective thinking
Study Question: Study Question 5
48) Beulah is the operations manager for an engineering firm supplying radiator caps for
automakers. She has the following four documents on her desk. Which of them will not be a
source of good information for her?
A) industry projections on pricing trends of steel for the next quarter
B) placement brochures of leading polytechnics and engineering colleges in the state
C) study on industrial accidents and grievance procedures
D) invite for "Media Convergence" organized by leading industrial advertisers
Answer: D
Diff: 3 Page Ref: 16-18
AACSB: Reflective thinking
Study Question: Study Question 5
49) With large amounts of information available, which of the following statements correctly
captures a functional principle of information management?
A) Information needs to be just barely sufficient.
B) Information should be presented graphically.
C) Information and data need to be stored separately.
D) The more information you receive, the more you should ignore.
Answer: A
Diff: 3 Page Ref: 17

AACSB: Reflective thinking
Study Question: Study Question 5
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Full file at />50) For information to be worth its cost:
A) it should be obtained at the least cost possible.
B) an appropriate relationship must exist between the cost of information and its value.
C) there should be at least three ROI streams that this information provides.
D) it has to benefit the maximum number of people with the least resources.
Answer: B
Diff: 3 Page Ref: 17
AACSB: Reflective thinking
Study Question: Study Question 5
51) A company's CEO receives a report of the average wages by division instead of a report
listing the wages of all employees. This is an example of failure of information to be ________.
A) accurate
B) timely
C) relevant
D) proper
Answer: C
Diff: 2 Page Ref: 17
AACSB: Analytic skills
Study Question: Study Question 5
52) ________ refers to the products, methods, inventions, and standards that are used for the
purpose of producing information.
A) Management information systems
B) Information programs
C) Information systems
D) Information technology

Answer: D
Diff: 3 Page Ref: 18
AACSB: Analytic skills
Study Question: Study Question 6
53) Which of the following is considered part of an information system but is not considered
information technology?
A) hardware
B) data
C) procedures
D) software
Answer: C
Diff: 3 Page Ref: 18
AACSB: Use of IT
Study Question: Study Question 6

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Full file at />1.3 Essay Questions
1) What is the implication of Moore's Law on future managers?
Answer: The current business scenario is flooded with vast amounts of data that requires the
effective assistance of information technology. Because of Moore's Law, the cost of data
communications and data storage is essentially zero. This implies that future business
professionals need to be able to assess, evaluate, and apply emerging information technology to
business.
Diff: 2 Page Ref: 4-5
AACSB: Reflective thinking
Study Question: Study Question 1
2) Explain the four key skills necessary to develop strong nonroutine cognitive skills.
Answer: The four non-routine skills identified as critical for organizations in the current scenario

are:
Abstract reasoning - the ability to make and manipulate models.
Systems thinking - to model the components of the system and to connect the inputs and outputs
among those components into a sensible whole, one that explains the phenomenon observed.
Collaboration - develop ideas and plans with others; provide and receive critical feedback.
Experimentation - create and test promising new alternatives, consistent with available
resources.
Diff: 2 Page Ref: 6-8
AACSB: Analytic skills
Study Question: Study Question 1
3) Briefly describe system, information system, and management information system.
Answer: A system is a group of components that interact to achieve some purpose. An
information system (IS) is a group of components that interact to produce information.
Management information systems is defined as the development and use of information systems
that help businesses achieve their goals and objectives.
Diff: 2 Page Ref: 8
AACSB: Analytic skills
Study Question: Study Question 2
4) List and briefly explain the components of an information system with an example.
Answer: An information system is explained using the five-component framework. The five
components are: computer hardware, software, data, procedures, and people. These five
components are present in every information system, from the simplest to the most complex. For
example, when you use a computer to write a class report, you are using hardware (the computer,
storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other wordprocessing program), data (the words, sentences, and paragraphs in your report), procedures (the
methods you use to start the program, enter your report, print it, and save and back up your file),
and people (you).
Diff: 2 Page Ref: 8-9
AACSB: Analytic skills
Study Question: Study Question 2

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Full file at />5) As a businessperson, what will be your role in the development and use of information
systems?
Answer: Throughout your career, in whatever field you choose, information systems will be
built for your use, and sometimes under your direction. To create an information system that
meets your needs, you need to take an active role in that system's development. Even if you are
not a programmer or a database designer or some other IS professional, you must take an active
role in specifying the system's requirements and in helping manage the development project. In
addition to development tasks, you will also have important roles to play in the use of
information systems and ancillary functions like protecting the security of the system and its
data.
Diff: 2 Page Ref: 9-10
AACSB: Reflective thinking
Study Question: Study Question 3
6) In developing an information system, what are the fallacies that a firm should avoid?
Answer: Information systems exist to help people who work in a business to achieve the goals
and objectives of that business. Information systems are not created for the sheer joy of exploring
technology. It is also important to note the wrong reasons why firms may think of developing an
information system. They are not created so that the company can be "modern" or so that the
company can show it has a social networking presence on the Web. They are not created because
the information systems department thinks it needs to be created or because the company is
"falling behind the technology curve." Some firms may justify their need for an information
system because "every other business has one."
Diff: 2 Page Ref: 10
AACSB: Reflective thinking
Study Question: Study Question 3
7) Which is the most important part of the five components of an information system? Why?
Answer: When you consider the five components of an information system, the last component,

people, includes you. Your mind and your thinking are not merely a component of the
information systems you use, they are the most important component. This is so because, even if
you have the perfect information system, if you do not know what to do with the information that
it produces, you are wasting your time and money. The quality of your thinking is a large part of
the quality of the information system.
Diff: 2 Page Ref: 11
AACSB: Reflective thinking
Study Question: Study Question 3

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Full file at />8) Describe the ordering of the five components of an information system in terms of their
difficulty and disruption.
Answer: The five components of the information systems framework are: computer hardware,
software, data, procedures, and people. The five components are shown in order of ease of
change and the amount of organizational disruption. It is usually a simple matter to order new
hardware and install it. Obtaining or developing new programs is more difficult. Creating new
databases or changing the structure of existing databases is still more difficult. Changing
procedures, requiring people to work in new ways, is even more difficult. Finally, changing
personnel responsibilities and reporting relationships and hiring and terminating employees are
both very difficult and very disruptive to the organization.
Diff: 2 Page Ref: 12
AACSB: Analytic skills
Study Question: Study Question 3
9) Explain the difference between data and information. Provide an example.
Answer: Data is recorded facts or figures. Information is knowledge derived from data; data
presented in a meaningful context; data processed by summing, ordering, averaging, grouping,
comparing, or other similar operations. Thus, the facts that employee James Smith earns $17.50
per hour and that Mary Jones earns $25.00 per hour are data. The statement that the average

hourly wage of all the aerobics instructors is $22.37 per hour is information.
Diff: 1 Page Ref: 12-13
AACSB: Analytic skills
Study Question: Study Question 4
10) What are the five characteristics of good information?
Answer: Accurate - Good information is based on correct and complete data, and it has been
processed correctly as expected.
Timely - Good information is produced in time for its intended use.
Relevant - Good information is relevant both to the context and to the subject.
Just sufficient - Good information is sufficient for the purpose for which it is generated, but ust
barely so.
Worth its cost - For good information to be worth its cost, there must be an appropriate
relationship between the cost of information and its value.
Diff: 3 Page Ref: 16-17
AACSB: Analytic skills
Study Question: Study Question 5
11) How is information technology different from information systems?
Answer: IT is the main driver behind new developments in information systems. But they
technically refer to different things. IT is all the "products, methods, inventions, and standards
that are used for the purpose of producing information." Whereas IS is the specific arrangement
of hardware, software, data, procedures, and people necessary to produce the required
information. IS is a more comprehensive term in this sense though they are often used
interchangeably in the popular press. A critical difference is that while you can buy information
technology, you cannot buy information systems.
Diff: 2 Page Ref: 18
AACSB: Use of IT
Study Question: Study Question 6
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