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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Q3-1. How do organizations use business intelligence (BI) systems? 1.1. Define business intelligence and BI system. Response : Business intelligence (BI) systems are information systems that process operational, social, and other data to identify patterns, relationships, and trends for use by business professionals and other knowledge workers. These patterns, relationships, trends, and predictions are referred to as business intelligence. 1.2. Explain the components in Figure 3-1. 1.2.1. Response : The boundaries of BI systems are blurry. In this text, we will take the broad view shown in Figure 3-1. Source data for a BI system can be the organization’s own operational data, social media data, data that the organization purchases from data vendors, or employee knowledge. The BI application processes the data with reporting applications, data mining applications, and Big Data applications to produce business intelligence for knowledge workers. 1.3. Give an example, other than one in this text, of one way that an organization could use business intelligence for each of the four tasks in Figure 3-2. 1.3.1. Response Amazon.com Informing What are trends Deciding How often customer checking that item Problem Solving Giving good deals Project Management Sending coupons if needed. 1.4. Name and describe the three primary activities in the BI process. Response : Three primary activities in the BI process: acquire data, perform analysis, and publish results. The three fundamental categories of BI analysis are reporting, data mining, and Big Data. Data acquisition is the process of obtaining, cleaning, organizing, relating, and cataloging source data. BI analysis is the process of creating business intelligence. Page 1 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Publish results is the process of delivering business intelligence to the knowledge workers who need it. Push publishing delivers business intelligence to users without any request from the users; the BI results are delivered according to a schedule or as a result of an event or particular data condition. Pull publishing requires the user to request BI results. Publishing media include print as well as online content delivered via Web servers, specialized Web servers known as report servers, automated applications, knowledge management systems, and content management systems. 1.5. Using Figure 3-3 as a guide, describe the major tasks for each activity. Response : As shown in Figure 3-3, acquiring data is the first step in the BI process. In response to the team’s request for data, the IS department extracted operational data to produce the table shown in Figure 3-4. This table is a combination of data from the Sales table (CustomerName, Con- tact, Title, Bill Year, Number Orders, Units, Revenue, Source, PartNumber) and the Part table (PartNumber, Shipping Weight, Vendor) for select vendors willing to release 3D part design files. 1.6. Summarize how the team at the parts distribution company used these activities to produce BI results. Response As team members examined this data, they concluded they had what they needed and actually wouldn’t need all of the data columns in the table. Notice there are some missing and questionable values. Numerous rows have missing values of Contact and Title, and some rows have a value of zero for Units. The missing contact data and title data weren’t a problem. But the values of zero units might be problematic. At some point, the team might need to investigate what these values mean and possibly correct the data or remove those rows from the analysis. In the immediate term, however, the team decided to proceed even with these incorrect values. Such problematic data is common in data extracts. 1.7. Explain the process shown in Figures 3-4 through 3-7. Response : The data in Figure 3-4 has been filtered for the team’s first criterion to consider parts only from particular vendors. For their next criterion, team members needed to decide how to Page 2 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 identify large customers. To do so, they created a query that sums the revenue, units, and average price for each customer. Looking at the query results in Figure 3-5, team members decided to consider only customers having more than $200,000 in total revenue; they created a query having just those customers and named that query Big Customers. Next, team members discussed what they meant by frequent purchase and decided to include items ordered an average of once a week or roughly 50 times per year. They set that criterion for Number Orders in the query to select only parts that were ordered in small quantities. They first created a column that computes average order size (Units/[Number Orders]) and then set a criterion on that expression that the average must be less than 2.5. Their last two criteria were that the part be relatively inexpensive and that it be lightweight. They decided to select parts with a unit price (computed as Revenue/Units) less than 100 and a shipping weight less than 5 pounds. The results of this query are shown in Figure 3-6. Of all the parts that the company sells, these 12 fit the criteria that the team created. The next question was how much revenue potential these parts represent. Accordingly, the team created a query that connected the selected parts with their past sales data. The results are shown in Figure 3-7. Publish results is the last activity in the BI process shown in Figure 3-3. In some cases, this means placing BI results on servers for publication to knowledge workers over the Internet or other networks. In other cases, it means making the results available via a Web service for use by other applications. In still other cases, it means creating PDFs or PowerPoint presentations for communicating to colleagues or management. In this case, the team reported these results to management in a team meeting. Judging just by the results in Figure 3-7, there seems to be little revenue potential in selling designs for these parts. The company would earn minimal revenue from the parts themselves; the designs would have to be priced considerably lower, and that would mean almost no revenue. In spite of the low revenue potential, the company might still decide to offer 3D designs to customers. It might decide to give the designs away as a gesture of goodwill to its customers; this analysis indicates it will be sacrificing little revenue to do so. Or it might do it as a PR move intended to show that it’s on top of the latest manufacturing technology. Or it might decide to postpone consideration of 3D printing because it doesn’t see that many customers ordering the qualifying parts. Page 3 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Of course, there is the possibility that the team members chose the wrong criteria. If they have time, it might be worthwhile to change their criteria and repeat the analysis. Such a course is a slippery slope, however. They might find themselves changing criteria until they obtain a result they want, which yields a very biased study. This possibility points again to the importance of the human component of an IS. The hard- ware, software, data, and query-generation procedures are of little value if the decisions that the team made when setting and possibly revising criteria are poor. Business intelligence is only as intelligent as the people creating it! With this example in mind, we will now consider each of the activities in Figure 3-3 in greater detail. Q3-2. How do organizations use data warehouses and data marts to acquire data? 2.1. Describe the need and functions of data warehouses and data marts. Response : Although it is possible to create basic reports and perform simple analyses from operational data, this course is not usually recommended. For reasons of security and control, IS professionals do not want data analysts processing operational data. If an analyst makes an error, that error could cause a serious disruption in the company’s operations. Also, operational data is structured for fast and reliable transaction processing. It is seldom structured in a way that readily supports BI analysis. Finally, BI analyses can require considerable processing; placing BI applications on operational servers can dramatically reduce system performance. 2.2. Name and describe the role of data warehouse components. Response Obtain data Cleanse data Organize and relate data Catalog data The term business intelligence users are different from knowledge workers in Figure 3-1. BI users are generally specialists in data analysis, whereas knowledge workers are often non- specialist users of BI results. A loan approval officer at a bank is a knowledge worker but not a BI user. 2.3. List and explain the problems that can exist in data used for data mining and sophisticated reporting. Page 4 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Response : Although data that is critical for successful operations must be complete and accurate, marginally necessary data need not be. For example, some systems gather demographic data in the ordering process. But, because such data is not needed to fill, ship, and bill orders, its quality suffers. • Dirty data •Wrong granularity • Missing values -Too fine • Inconsistent data -Not fine enough • Data not integrated • Too much data - Too many attributes -Too many data point 2.4 Use the example of a supply chain to describe the differences between a data warehouse and a data mart. Response The data warehouse takes data from the data manufacturers (operational systems and other sources), cleans and processes the data, and locates the data on the shelves, so to speak, of the data warehouse. The data analysts who work with a data warehouse are experts at data management, data cleaning, data transformation, data relationships, and the like. However, they are not usually experts in a given business function. A data mart is a data collection, smaller than the data warehouse, that addresses the needs of a particular department or functional area of the business. If the data warehouse is the distributor in a supply chain, then a data mart is like a retail store in a supply chain. Users in the data mart obtain data that pertain to a particular business function from the data warehouse. Such users do not have the data management expertise that data warehouse employees have, but they are knowledgeable analysts for a given business function. Q3-3. What are three techniques for processing BI data? 3.1 Name the three types of BI analysis and describe how the goal of each differs. Response : Reporting analysis is the process of sorting, grouping, summing, filtering, and formatting structured data. Structured data is data in the form of rows and columns. Most of Page 5 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 the time structured data means tables in a relational database, but it can refer to spreadsheet data as well. A reporting application is a BI application that inputs data from one or more sources and applies reporting processes to that data to produce business intelligence. BI Analysis TypeGoal Reporting Create information about past performance. Data mining Classify and predict. Big Data Find patterns and relationships in Big Data. Name and describe five basic reporting operations in reporting analysis. Response The team that analyzed parts in Q3-1 used Access to apply all five of these operations. Examine, for example, Figure 3-7. The results are sorted by Total Revenue and filtered for particular parts, sales are grouped by PartNumber, Total Orders and Total Revenue are calculated , and the calculations for Total Revenue are formatted correctly as dollar currency. 3.2 Define RFM analysis and explain the actions that should be taken with customers who have the following scores: [5,5,5,], [1,5,5,], [5,5,3,], and [5,2,5]. Response : RFM analysis , a technique readily implemented with basic reporting operations, is used to analyze and rank customers according to their purchasing patterns. 4 RFM considers how recently (R) a customer has ordered, how frequently (F) a customer ordered, and how much money (M) the customer has spent. 3.3 Explain OLAP and describe its unique characteristics. Response : Online analytical processing (OLAP) , a second type of reporting application, is more generic than RFM. OLAP provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data. The defining characteristic of OLAP Page 6 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 reports is that they are dynamic. The viewer of the report can change the report’s format— hence the term online . 3.4 Explain the roles for measure and dimension in an OLAP cube. Response : An OLAP report has measures and dimensions. A measure is the data item of interest. It is the item that is to be summed or averaged or otherwise processed in the OLAP report. Total sales, average sales, and average cost are examples of measures. A dimension is a characteristic of a measure. Purchase date, customer type, customer location, and sales region are all examples of dimensions. Customer RFM Score Big 7 Sports 553 St. Louis Soccer Club 155 Miami Municipal 121 Central Colorado State 333 Define data mining and explain how its use typically differs from reporting applications. Describe the differences between unsupervised and supervised data mining. 3.5 Define data mining and explain how its use typically differs from reporting applications. Response : Data mining is the application of statistical techniques to find patterns and relationships among data for classification and prediction. As shown in Figure 3-17, data mining resulted from a con- vergence of disciplines, including artificial intelligence and machine learning. 3.6 Describe the differences between unsupervised and supervised data mining. Response : With unsupervised data mining , analysts do not create a model or hypothesis before running the analysis. Instead, they apply a data mining application to the data and observe the Page 7 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 results. With this method, analysts create hypotheses after the analysis , in order to explain the patterns found. With supervised data mining , data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model. For example, suppose marketing experts in a communications company believe that cell phone usage on weekends is determined by the age of the customer and the number of months the customer has had the cell phone account. A data mining analyst would then run an analysis that estimates the effect of customer and account age. Name and explain the three v’s of Big Data. 3.6.A Response : Provide your response here—please remove this explanatory text before entering your response. 3.7 Describe the general goal of MapReduce and explain, at a conceptual level, how it works. Response : MapReduce is a technique for harnessing the power of thousands of computers working in parallel. The basic idea is that the Big Data collection is broken into pieces, and hundreds or thousands of independent processors search these pieces for something of interest. For example, a data set having the logs of Google searches is broken into pieces, and each independent processor is instructed to search for and count search keywords. Just a small portion of the data; here you can see a portion of the keywords that begin with H . 3.8 Explain the purpose of Hadoop and describe its origins. Response Hadoop is an open-source program supported by the Apache Foundation that implements MapReduce on potentially thousands of computersMicrosoft offers Hadoop on its Azure platform as a service named HDInsight. Describe the ways organizations can deploy Hadoop. Page 8 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Response . Hadoop could drive the process of finding and counting the Google search terms, but Google uses its own proprietary version of MapReduce to do so instead. Some companies implement Hadoop on server farms they manage themselves, and others, as you’ll read more about in Chapter 6, run Hadoop in the cloud. Amazon supports Hadoop as part of its EC3 cloud offering. Define Pig. Response : Hadoop includes a query language titled Pig . Q3-4. What are the alternatives for publishing BI? 4.1 Name four alternative types of server used for publishing business intelligence. Response : Email or collaboration tool, Web server, SharePoint, BI server 4.2 Explain the difference between static and dynamic reports; explain the term subscription. Response : Static reports are BI documents that are fixed at the time of creation and do not change. A printed sales analysis is an example of a static report. In the BI context, most static reports are published as PDF documents. Dynamic reports are BI documents that are updated at the time they are requested. A sales report that is current at the time the user accessed it on a Web server is a dynamic report. 4.2 Describe why dynamic reports are difficult to create. Response : In almost all cases, publishing a dynamic report requires the BI application to access a database or other data source at the time the report is delivered to the user. 4.3 Define knowledge management. Page 9 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Response Knowledge management (KM) is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need that capital. The goal of knowledge management is to prevent the kinds of problems just described. 4.4 Explain five key benefits of KM. 1. Response Process quality is measured by effectiveness and efficiency, and knowledge management can improve both. KM enables employees to share knowledge with each other and with customers and other partners. By doing so, it enables the employees in the organization to better achieve the orga- nization’s strategy. At the same time, sharing knowledge enables employees to solve problems more quickly and to otherwise accomplish work with less time and other resources, hence improving process efficiency. 4.5 Briefly describe one type of KM system. 1. Response : Consider the help desk at any organization, say, one that provides support for electronic components like iPhones. When a user has a problem with an iPhone, he or she might contact Apple support for help. The customer service department has, collectively, seen just about any problem that can ever occur with an iPhone. The organization as a whole knows how to solve the user’s problem. However, that is no guarantee that a particular support representative knows how to solve that problem. The goal of KM is to enable employees to be able to use knowledge possessed collectively by people in the organization. By doing so, both process quality and team capability improve. 4.6 Summarize possible employee resistance to hypersocial knowledge sharing and name two management techniques for reducing it. 1. Response : Two human factors inhibit knowledge sharing in organizations. The first is that employees can be reluctant to exhibit their ignorance. Out of fear of appearing incompetent, employees may not sub- mit entries to blogs or discussion groups. Such reluctance can sometimes be reduced by the attitude and posture of managers. One strategy for employees in this situation is to provide private media that can be accessed only by a smaller group of Page 10 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 people who have an interest in a specific problem. Members of that smaller group can then discuss the issue in a less-inhibiting forum. 4.7 Define content management system (CMS). Response : Content management systems (CMS) are information systems that support the management and delivery of documents including reports, Web pages, and other expressions of employee knowledge. 4.8 Name two CMS application alternatives and explain the use of each. Response Typical users of content management systems are companies that sell complicated products and want to share their knowledge of those products with employees and customers. Someone at Toyota, for example, knows how to change the timing belt on the four-cylinder 2020 Toyota Camry. Toyota wants to share that knowledge with car owners, mechanics, and Toyota employees. 4.9 Describe five challenges organizations face for managing content. Response: Content management systems face serious challenges. First, most content databases are huge; some have thousands of individual documents, pages, and graphics. Second, CMS content is dynamic. Imagine the frequency of Web page changes at Apple or Google or Amazon that must occur each day! Another complication for content management systems is that documents do not exist in isolation from each other. Documents refer to one another, and when one changes, others must change as well. To manage these connections, content management systems must maintain link- ages among documents so that content dependencies are known and used to maintain document consistency. A fourth complication is that document contents are perishable. Documents become obsolete and need to be altered, removed, or replaced. For example, Microsoft’s new release of Microsoft Page 11 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Office 2019 likely affects thousands of internal documents, external facing pages, blogs, etc. All of that has to be changed in a matter of hours. Finally, content is provided in many languages. 3M has tens of thousands of products, some of which are harmful when used improperly. 3M must publish product safety data for all such products in several dozen languages. Every document, in whatever language it was authored, must be translated into all languages before it can be published on 3M’s site. And when one document changes, all of the translated versions must change as well. 4.9.A Why is artificial intelligence important? 4.10 Define artificial intelligence and automation. Response : Artificial intelligence (AI) is the ability of a machine to simulate human abilities such as vision, communication, recognition, learning, and decision making in order to achieve a goal. Organizations hope to use AI to increase the automation , or the process of making systems operate without human intervention, of mundane tasks typically done by humans. 4.11 Describe how organizations hope to use AI to increase automation. Response: A recent report by Bank of America Merrill Lynch suggests that the AI and automated robotic market could be valued at $153 billion by 2020. 13 The resulting efficiency gains and cost reductions over the subsequent 10 years could be as large as $14 to $33 trillion. That’s an enormous economic impact in a short period of time. To put that number in perspective, the entire annual gross domestic product (GDP) for the U.S. is about $18 trillion. 4.12 List each of the forces shown in Figure 3-22 that have driven recent advances in AI. Response : computing power Availability of large data sets for training Page 12 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Clous scalability and applications Increased device connectivity New AI techniques Practical AI application 4.13 Explain why each of these forces has been important to the current success of AI. Response : These six forces have driven innovations in AI to the point that AI is now becoming widely used, and it’s becoming a core part of many techs companies’ strategic advantage. AI has already been widely adopted by all of the major tech companies, and users are interacting with it (sometimes unknowingly) on a daily basis. It’s also being used to create innovative new products by smaller companies. Traditional organizations are starting to see the value of AI, too. 4.14 Define deep learning. Response : This multilayered neural network technique was applied to learning tasks and is now commonly known as deep learning . Deep learning has greatly increased the accuracy and practical usefulness of AI. 4.15 Describe how users may already be using AI applications like those shown in Figure 3-23. Response : It’s also being used to create innovative new products by smaller companies. Traditional organizations are starting to see the value of AI, too . 5 How will Artificial Intelligence and automation affect organizations? Page 13 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 5.1 Explain how AI and automation could be used to reduce the costs and increase productivity for a fast-food restaurant. Response : Artificial intelligence sounds like a great innovation—it will reduce costs, increase productivity, create new services, find unique solutions to age-old problems, and enable an army of smart devices with new capabilities. But, as a business leader, you need to understand the broader implications of using AI and automated machines. You need to understand how this new wave of AI is going to affect you and your organization. You’re considering buying a fully automated hamburger-making machine powered by an AI. It can make 400 custom hamburgers an hour. It does it safely, cleanly, and without any human intervention. It’s so efficient that it can replace three full-time cooks, potentially saving you $90,000 per year. It doesn’t take breaks, call in sick, steal food, or sue you for lost wages. This robotic fast-food worker may sound far-fetched, but these types of machines already exist: Both Momentum Machines and Miso Robot- ics make robots with these capabilities. 5.1.A List some of the cost savings beyond wages and salaries shown in Figure 3-24 that organizations might see from adopting automated labor. Response : First, let’s consider the reduction in labor costs that come from using automated labor. According to the U.S. Bureau of Labor Statistics, the average employee in the United States makes $24.10 per hour. 17 But that’s not the true cost. As shown in Figure 3-24, benefits add an additional 46 percent ($11.19) per hour to the true cost. So, a $24-per-hour employee actually costs at least $35 per hour. If you buy an automated system, you won’t have to pay for any of the additional benefits required with human labor. You won’t have to pay for overtime, leave, insurance, or retirement contributions. 5.1.B Summarize some of the potential impacts of automated labor on organizational productivity as shown in Figure 3-25. Response : Page 14 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Productivity Gains from Automation Can work 24 hours, 365 days Immediately trained, no “onboarding" No breaks during work hours No impaired workers No time-wasting activities No accidents or injuries No arguments with other employees or managers No scheduling issues All holiday shifts covered 5.1.C Describe how the adoption of automated labor may reduce employee fraud and its potential impact on profitability. Response : If you bought an automated machine, you would reduce the amount of employee fraud within your organization dramatically. An automated machine won’t steal from you. It doesn’t want to or need to. It doesn’t feel financial pressures or look for opportunities to steal. It just performs its task. It may also indirectly add 5 percent to your bottom line by reducing employee fraud. 5.2 Describe two possible reactions people might have when their organizations implement widespread automation. Response : The first reaction is from the group of people who see AI as an incredible oppor- tunity. They get excited about the gains in productivity, profitability, and competitive advantages. They want to be on the cutting edge and be the first to implement it in their industry. The second reaction is from the group of people who see AI as a serious threat. They’re worried about their jobs. They are concerned about what happens if they get replaced by a machine or an AI bot. They worry that their years of education and training will become worthless or Page 15 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 that they may have to change careers. These are valid concerns, and this group of people is right to be concerned. Major seismic shifts in global workforces are imminent. 5.3 List some jobs that humans may not want to do but that would be good for an automated worker. Response : Take waste disposal, for example. Twenty years ago, there were three workers on a garbage truck. One would drive, and two would fill the truck. Today, one person drives the truck and operates the side loader arm. In another twenty years, the truck will be self-driving, and garbage collection will be fully autonomous. . 5.4 Describe how AI and automation will create new types of jobs to replace those that will be lost and why workers will have to adapt to these changes. Response : Home repairs, house cleaning, car washing, auto repairs, gardening, and cooking could all be done autonomously. Automated systems may allow workers to shift from assembling and making existing products to designing and creating new products. The key will be helping workers make that shift. 5.5 List skills that can help you adapt to a shifting workplace caused by AI an automation. Response : Machines need humans to survive. They also need humans to help them to improve. Humans and machines need each other. That’s why we’ll be working together for a long time to come. 6 What is the goal of AI? 6.1 Define strong AI, weak AI, and superintelligence. Page 16 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Response : Strong AI that can complete all of the same tasks a human can. This includes the ability to process natural language; to sense, learn, interact with the physical world; to represent knowledge; to reason; and to plan. Most AI researchers believe this will happen sometime around 2040. Weak AI which is focused on completing a single specific task. There is speculation that someday we may be able to create an AI that moves beyond strong AI to create a superintelligence capable of intelligence more advanced than human intelligence. 6.1.A Describe the Turing test. Response : There is considerable disagreement about what it means to actually create an artificial intelligence. An early computer scientist named Alan Turing said a machine could be considered intelligent if a human could have a conversation with it and not be able to tell if it was a machine or a human. This standard, shown in Figure 3-28, became known as the Turing test . 6.2 Explain why the major AI research areas shown in Figure 3-29 seek to simulate all human abilities. Response : AI as a research area is much broader than can be shown here. AI is a general term that means different things to different people depending on their area of interest. However, the implementation of AI into real-world technology usually involves combining multiple different areas together. 6.2.A Describe how each of these major AI research areas might be used in a self-driving car. Response : A self-driving car will have multiple computer vision systems including GPS, gyroscopes, accelerometers, LIDAR, RADAR, 360-degree cameras, and possibly even night- vision capability. It will also have a robotics component that governs locomotion, sensing, and navigation. Future self-driving cars will automatically learn from your past transportation Page 17 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 needs and environmental preferences ( machine learning ), preplan your routes, and monitor for delays ( planning ). You’ll probably even be able to give your car instructions by talking with it normally ( natural language processing ). 6.2.B Describe the potential effects of saying “no” to AI. Response : Widespread adoption of AI is going to cause a lot of changes in organizations. As organizations change, so will the types of jobs they need filled. Workers are going to have to continually develop new skills for new types of jobs. They might find themselves doing work that has little to do with their formal education. People don’t like change in general. Change introduces risk, uncertainty, and loss of control. It will be tempting to say “no” to AI and automation. Governments may feel pressure to place restrictions on implementations of AI and automation to protect workers. 6.2.C How does AI work? 6.3 Define machine learning, algorithm, and Naïve Bayes Classifier. Response : AI has become somewhat of a buzzword in the tech and business worlds. People talk about the amazing things AI can do, but they don’t really understand how it works. As a business professional, you need to have a basic understanding of how AI works. A subset of AI is machine learning , or the extraction of knowledge from data based on algorithms created from training data. Essentially, machine learning is focused on predicting outcomes based on previously known training data. Now let’s apply machine learning to a real-world problem that can help an organization. We’ll use machine learning to automatically classify email as either spam or legitimate email as described by Paul Graham. 25 In order to do so, we’ll need to choose an algorithm , or a set of procedures used to solve a mathematical problem, that best fits our situation. We’ll use an algorithm called a Naïve Bayes Classifier that predicts the probability of a certain outcome based on prior occurrences of related events. In other words, we’re going to try to predict whether a new email is spam or not based on attributes of previous spam messages. 6.3.A Describe how machine learning uses training data to predict future outcomes. Page 18 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Response : In this case, 88 percent of previous emails containing the word promotion were spam. So, in the future, if a new email comes in containing the word promotion , we will say there is an 88 percent chance that it is spam. That doesn’t mean the word promotion can be used to perfectly identify all spam, but it’s a strong indicator. Combining it with other key words could really boost spam detection accuracy. 6.3.B Summarize how machine learning can be used to detect spam as shown in Figure 3- 30. Response : To do this, we first collect a large number of previous emails. Then we classify each email as either “spam” or “legitimate,” as shown in Figure 3-30a. Next, we search all of the emails for the word promotion and see how many matches we get. As shown in Figure 3-30b we found 5 legitimate emails and 40 spam emails containing the word promotion . Some of the legitimate emails may have used the word promotion in the context of an advancement in your job. On the other hand, the spam emails likely used the word promotion in terms of a special sale. 6.4 Define natural language processing. Response : It is the ability of a computer system to understand spoken human language, to answer questions. It was designed to play against world champions on the quiz show Jeopardy! , and in 2011 it won. 6.5 Describe how IBM’s AI named Watson could be used by organizations to help answer user questions. Response : Watson acquires content from sources like dictionaries, encyclopedias, literature, reports, and databases. It extracts valuable pieces of data from these structured and semi- structured data sources. It then takes these extracted pieces of data and adds them to a corpus of knowledge , or a large set of related data and texts. During the Jeopardy! challenge, Watson used 200 million pages of content on 4 terabytes of disk space. 28 Page 19 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Once the corpus is built, it can start answering questions. Each question that comes in goes through question analysis. Watson identifies the type of question being asked and analyzes the question itself. While this may sound overly simplistic, it’s good to remember that it takes most humans several years to learn to speak their primary language. Next, Watson generates hypotheses about what might be the right answer to the question. It searches its data for possible candidate answers. It takes the top 250 candidate answers and then filters them down to the top 100 answers. Then it goes back to its data and looks for evidence to support each candidate answer. It uses many different techniques to score each answer based on the available evidence. Finally, Watson merges all of the scored candidate answers, identifies the best possible answer, and estimates the probability that the answer is correct. And here’s the best part—it does everything from question analysis to final answer estimation in 3 seconds! That’s powerful. 6.5.A Summarize how the question and answer process used by IBM’s Watson works as shown in Figure 3-31. Response : IBM’s Watson is an amazing system. Watson can read hundreds of millions of pages per second, can interact with people all over the world at the same time, and speaks nine languages. But Watson still needs to be trained for different tasks. 6.5.B 2029? 6.6 Summarize how retailers can use BI to target customers. Response : They use BI to know what you want to buy, when you’ll buy it, and how you’ll buy it. They can detect fraudulent credit card purchases, automatically lock your credit card, and resolve the unauthorized charges quickly. But there’s much more that BI can do beyond retail. 6.6.A Explain why companies in the future will know more about you than just your purchasing habits. Page 20 of 22
Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 Response : data storage, processing power, and network speeds will have increased exponentially. Most of the devices around you will be collecting and transmitting data. Companies will know more about you than just your purchasing habits. 6.7 What are some positives and negatives to analyzing this kind of data? Response : All of these types of data can be used for beneficial outcomes. But they could also be used for malicious outcomes. Privacy will become an increasing concern as BI develops over time. 6.8 Describe how AI might automate certain types of BI analyst jobs. Response : AI will likely automate many of the routine analytical tasks we now know we want to perform. But it also has the potential to find new patterns, correlations, and insights. In the future, AIs may do as much teaching as they do learning. They may even move beyond us. 6.9 Summarize the way AI could spiral out of human control. Response AI will likely automate many of the routine analytical tasks we now know we want to perform. But it also has the potential to find new patterns, correlations, and insights. In the future, AIs may do as much teaching as they do learn. They may even move beyond us. 6.9.A In your opinion, is this a problem? 6.9.B Response : Yes and No 6.10 Why or why not? Response : No because AIs may do as much teaching as they do learn. They may even move beyond us. Yes, if AI becomes sophisticated enough that it can adapt and create its own software and, hence, adapt its behavior without human assistance. Page 21 of 22
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Chapter 3 Active Review Questions Name: Januka Dahal Pandey Sep 12, 2023 6.10.A Describe how Kurzweil’s singularity might affect humanity. Response : Ray Kurzweil developed a concept he calls the Singularity , which is the point at which an AI becomes sophisticated enough that it can adapt and create its own software and, hence, adapt its behavior without human assistance. Page 22 of 22
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