MIS Practice 2 — Questions and Answers
Question 1: A retail company wants to integrate its inventory, sales, and HR data into a single system. Which type of system best fits this need?
- Decision Support System (DSS)
- Enterprise Resource Planning (ERP) (Correct answer)
- Customer Relationship Management (CRM)
- Executive Information System (EIS)
Correct answer: Enterprise Resource Planning (ERP)
ERP systems integrate core business processes—including inventory, sales, and HR—into one unified platform.
Question 2: Which data characteristic ensures that information is accessible to authorized users whenever they need it?
- Integrity
- Confidentiality
- Availability (Correct answer)
- Authenticity
Correct answer: Availability
Availability means authorized users can access information and systems when required, a core pillar of the CIA triad.
Question 3: A hospital uses software that monitors patient vitals in real time and alerts nurses to anomalies. This is an example of which system type?
- Transaction Processing System (TPS)
- Management Information System (MIS)
- Expert System
- Process Control System (Correct answer)
Correct answer: Process Control System
Process control systems monitor and manage physical or operational processes in real time using sensor data.
Question 4: In the context of database design, what does 'normalization' primarily achieve?
- Speeds up all read queries by adding indexes
- Eliminates data redundancy and improves data integrity (Correct answer)
- Encrypts sensitive fields in a table
- Converts relational data to a flat-file format
Correct answer: Eliminates data redundancy and improves data integrity
Normalization organizes database tables to reduce redundancy and prevent update anomalies, improving overall integrity.
Question 5: Which business intelligence concept refers to drilling down from a summary-level view to progressively more detailed data?
- Data aggregation
- OLAP roll-up
- OLAP drill-down (Correct answer)
- ETL extraction
Correct answer: OLAP drill-down
OLAP drill-down allows analysts to navigate from higher-level summaries (e.g., annual totals) into granular transaction-level data.
Question 6: A company's CIO wants a real-time dashboard showing KPIs across all departments. Which system is most appropriate?
- Transaction Processing System
- Executive Information System (EIS) (Correct answer)
- Office Automation System
- Supply Chain Management System
Correct answer: Executive Information System (EIS)
An EIS (also called ESS) is designed to give executives summarized, real-time KPI views drawn from multiple organizational systems.
Question 7: What is the primary purpose of a data warehouse in an organization?
- To process day-to-day transactions as they occur
- To store and analyze large volumes of historical data for decision-making (Correct answer)
- To manage employee access credentials and roles
- To synchronize data between mobile devices and servers
Correct answer: To store and analyze large volumes of historical data for decision-making
A data warehouse consolidates historical data from multiple sources to support analysis, reporting, and strategic decision-making.
MIS Practice 2
A retail company wants to integrate its inventory, sales, and HR data into a single system.
Which type of system best fits this need?