Business Intelligence Can Provide Managers with the Ability to Make

question 90

Multiple Choice

Business intelligence can provide managers with the ability to make better decisions. Which of the following is not an example of how different industries use business intelligence?

• A) Predict claim amounts and medical coverage costs
• B) Track crime patterns, locations, and criminal behavior
• C) Identify the primary locations where data is collected
• D) Predict sales, inventory levels, and distribution

Recognize how firms make decisions on output supply and production methods.

Understand the role of market price of output, input prices, and technology in determining production decisions.

Know the difference between long run and short run in economic terms.

Understand the goal of firms to maximize total revenue.

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Definitions:

Ordinary Goods

In a consumer’s utility function, those for which additional units of one good are required to compensate for fewer units of another, and vice versa; and for which the consumer experiences a diminishing marginal rate of substitution when substituting one good in place of another.

Marginal Rate

The rate at which one variable changes over the change in another variable, often used in the context of taxes or marginal rate of substitution in economics.

Substitution

The economic concept whereby consumers replace costlier items with less expensive alternatives, or firms switch between inputs to minimize costs.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, representing equal levels of utility.