PM: Information systems and data analytics

Question 1 · Syllabus ref A3a · Big data — five Vs

A retail company collects real-time transaction data from 10 million customers across 50 countries, processing over 500,000 transactions per minute from multiple formats including point-of-sale systems, mobile apps, and social media sentiment. Which characteristics of big data does this scenario illustrate?

1. Volume, velocity and variety — large quantities of data, generated rapidly, from multiple formats and sources
2. Volume and velocity only — variety is not relevant as all data relates to the same company
3. Veracity and value only — the focus should be on data quality and usefulness, not its scale
4. Variety and veracity only — the multiple formats create data quality issues that must be addressed first

Question 2 · Syllabus ref A3b · Big data pyramid

A supermarket's loyalty card system records every purchase made by each customer. The system identifies that customers who buy nappies also frequently buy beer on Friday evenings. The supermarket then uses this to place beer promotions near the nappy aisle every Friday. At which stage of the big data pyramid does 'placing beer promotions near nappies' sit?

1. Knowledge — understanding how identified links and connections can be applied
2. Wisdom — using insights to make informed business decisions that add value
3. Information — analysing raw data to look for relationships and patterns
4. Data — raw unprocessed records of individual transactions

Question 3 · Syllabus ref A3d · Predictive analytics

A logistics company analyses five years of historical delivery data, weather patterns, and traffic information to forecast the probability of delivery delays in specific regions on specific days. This enables it to pre-position additional drivers before delays occur. Which use of data analytics does this best illustrate?

1. Descriptive analytics — summarising what has happened in the past
2. Diagnostic analytics — determining why past delivery delays occurred
3. Predictive analytics — using historical data and statistical models to forecast future events
4. Prescriptive analytics — recommending the optimal action to take in a given situation

Question 4 · Syllabus ref A1d · Types of information systems

A multinational manufacturing company uses a single integrated software system that connects finance, production, procurement, HR, and sales data into one real-time database. When a sale is recorded, inventory is automatically updated and a production order generated. Which type of information system is this?

1. Management Information System (MIS)
2. Executive Information System (EIS)
3. Transaction Processing System (TPS)
4. Enterprise Resource Planning (ERP) system

Question 5 · Syllabus ref A2b · Controls over information distribution

A company produces monthly management reports containing commercially sensitive pricing data. Which of the following represents the most effective control over the distribution of these reports?

1. Maintaining an agreed, up-to-date circulation list specifying authorised recipients by role, reviewed and approved by the data owner
2. Allowing all managers to generate their own versions of the report from the data system to ensure relevance to their needs
3. Sending the report to all staff simultaneously to ensure transparency and avoid accusations of selective disclosure
4. Distributing reports by email and relying on recipients to forward only to those who need the information

Question 6 · Syllabus ref A1e · Customer relationship management systems

A company tracks all customer interactions, purchase history, preferences, and complaints in a centralised system that its sales, marketing, and customer service teams all access. What type of information system is this?

1. Executive Information System (EIS)
2. Customer Relationship Management (CRM) system
3. Enterprise Resource Planning (ERP) system
4. Management Information System (MIS)

Question 7 · Syllabus ref A3e · Challenges of big data

A hospital system collects data from thousands of patient monitoring devices, electronic health records, and research databases. Which of the following represents a significant challenge in implementing big data analytics in this context?

1. The data is too small in volume to require big data techniques
2. Big data analytics is only applicable in commercial environments, not healthcare
3. Data security, privacy regulations, and the difficulty of integrating data from multiple incompatible legacy systems
4. The high accuracy of medical data means veracity is not a concern in healthcare analytics

Question 8 · Syllabus ref A2d · Data visualisation

A finance director wants to present five years of divisional revenue trends to the board in a way that makes it easy to spot patterns and compare divisions simultaneously. Which approach best meets this need?

1. A detailed table of monthly revenue figures for each division in a spreadsheet
2. A written narrative summarising average annual revenue for each division
3. A series of individual pie charts, one per year, showing each division's share of total revenue
4. A multi-line chart showing each division's revenue over time on the same axes

Question 9 · Syllabus ref A1b · Costs and benefits of information systems

A company has implemented a new ERP system. The one-off implementation cost was incurred last year. From this year onwards the system incurs annual maintenance of £180,000 and delivers recurring annual benefits of: reduced inventory costs £400,000 and improved reporting saving 200 management hours per year (valued at £80/hour). What is the net recurring annual benefit of the system?

1. £236,000
2. £416,000
3. £220,000
4. £56,000

Question 10 · Syllabus ref A2c · Information security controls

A company's finance system contains highly confidential forecast data that must not be disclosed externally before announcement. Which combination of controls is most appropriate to protect this information?

1. The data is stored on a shared drive accessible to all finance staff to ensure collaboration
2. Access restricted by role-based permissions; data encrypted at rest and in transit; audit trails recording all access; staff training on data handling obligations
3. The data is printed and distributed to relevant managers who are asked to keep it confidential
4. Access is controlled by a single password known to all finance team members

Question 11 · Syllabus ref A3c · Data mining

A credit card company analyses millions of transaction records to identify unusual spending patterns that differ from a cardholder's normal behaviour, flagging potential fraudulent transactions for review. This is an example of which application of data analytics?

1. Transaction processing — recording and validating individual card transactions
2. Descriptive reporting — summarising the volume and value of transactions by category
3. Data mining — identifying hidden patterns and anomalies within large datasets
4. Executive information — providing senior management with a dashboard of fraud statistics

Question 12 · Syllabus ref A1a · Role of information systems

Which of the following best describes the role of management information systems in an organisation?

1. To record every individual transaction that occurs within the organisation in real time
2. To provide the board with long-term strategic intelligence from external sources
3. To process payroll, invoicing, and other routine administrative tasks automatically
4. To convert operational data into structured reports and summaries that support management decision-making, planning, and control

Question 13 · Syllabus ref A3b · Big data — value stage

A telecommunications company holds billing records, call logs, and customer service interactions for 20 million customers. A data scientist identifies that customers who contact support three or more times in a month are 70% more likely to cancel their contract within 90 days. Which stage of the big data pyramid does this finding represent?

1. Knowledge — understanding how the identified pattern (support contacts) can be applied to predict churn
2. Wisdom — using the insight to make a business decision to reduce churn
3. Information — identifying that a relationship exists between support contacts and churn
4. Data — the raw call log and billing records themselves

Question 14 · Syllabus ref A1e · Executive information systems

A chief executive receives a weekly dashboard showing market share trends, competitor revenue estimates, key financial KPIs, and economic indicators from multiple external and internal sources, presented in a highly visual, drill-down format. Which type of information system produces this?

1. Transaction Processing System (TPS)
2. Executive Information System (EIS)
3. Management Information System (MIS)
4. Enterprise Resource Planning (ERP) system

Question 15 · Syllabus ref A2a · Management information for control

A production manager receives a daily report showing actual output, machine downtime, and material usage for each production line, compared against standard targets. Which control use of management information does this represent?

1. Feed-forward control — taking action before a problem occurs based on forecast information
2. Strategic control — providing the board with information to assess long-term performance
3. Feedback control — comparing actual results against planned performance to identify deviations requiring corrective action
4. Tactical planning — using information to allocate resources across departments for the coming quarter

Question 16 · Syllabus ref A1e · Transaction processing systems

Which of the following best describes a transaction processing system (TPS)?

1. A system that provides strategic-level summaries and analysis for board members
2. A system that integrates all business functions including finance, HR, and production into one database
3. A system that captures, stores, and processes the detailed records of individual business transactions such as sales, purchases, and payroll
4. A system that supports medium-term tactical decisions by producing regular management reports

Question 17 · Syllabus ref A3a · Big data — volume velocity variety

Which of the following correctly identifies ALL five Vs of big data?

1. Volume, Velocity, Variety, Visibility, Validity
2. Value, Validity, Variation, Volume, Velocity
3. Volume, Velocity, Variety, Veracity, Value
4. Volume, Variety, Veracity, Viability, Value

Question 18 · Syllabus ref A2b · Internal information controls

A company produces a monthly board report containing commercially sensitive strategic information. Which of the following controls is most important to ensure the security of this information?

1. The report should be sent to all senior managers to ensure broad awareness of strategic direction
2. Recipients should be asked to sign a confidentiality agreement before each report is sent
3. The circulation list should be reviewed and agreed with the data owner, updated to reflect current role-holders, and strictly enforced
4. The report should be produced quarterly rather than monthly to reduce the risk of leakage