Consider the following two statements : (A) Business intelligence and Data…
2016
Consider the following two statements :
(A) Business intelligence and Data warehousing is used for forecasting and Data mining.
(B) Business intelligence and Data warehousing is used for analysis of large volumes of sales data.
Which one of the following options is correct ?
- A.
(A) is true, (B) is false.
- B.
Both (A) and (B) are true.
- C.
(A) is false, (B) is true.
- D.
Both (A) and (B) are false.
Attempted by 35 students.
Show answer & explanation
Correct answer: B
Answer: Both statements are true.
Why: Business intelligence (BI) and data warehousing (DW) work together to collect, store, and analyze historical and transactional data, enabling a range of analytical tasks.
Forecasting and data mining: A data warehouse provides integrated historical data that BI tools and data mining algorithms use to discover patterns and build predictive models for forecasting demand, sales, or other metrics.
Analysis of large volumes of sales data: Data warehouses are designed for storing large volumes of cleaned, aggregated sales data; BI tools perform reporting, trend analysis, and ad-hoc queries on that data to support decisions.
Practical example: A retailer uses a data warehouse to store years of transactions and uses BI to run seasonal sales forecasts and to apply data mining techniques to identify customer segments.
Conclusion: Both uses described are core to BI and DW, so the correct answer is that both statements are true.