Q.

Explain BI system architecture with the help of diagram

Business Intelligence (BI) is like a toolbox for data, from gathering to analysis and
presentation. It's a system where data, people, processes, technology, and management work
together. BI helps organizations collect, analyze, and present data effectively, making it
easier to understand and act upon.

BI framework consists of several key components:

1. ETL Tools: These tools handle data extraction, transformation, and loading. They
collect, filter, integrate, and aggregate operational data to be stored in a data
warehouse or data mart. For instance, they can gather competitor product data from
external sources and format it for analysis.
2. Data Store: This component, usually represented by a data warehouse or data mart,
stores business data and models. It optimizes data for analysis and query speed,
containing both operational data and external data relevant to the business, such as
market indicators and competitors' data.
3. Data Query and Analysis Tools: These tools retrieve, analyze, and mine data from
the data store. Data analysts use them to create queries and access the database,
advising on data selection and business data model building. Typically, they are
represented as OLAP tools.
4. Data Presentation and Visualization Tools: This component presents data to end-
users in various formats. Data analysts use these tools to organize and present data,
helping users choose appropriate presentation formats like summary reports, graphs,
or maps. They serve as the front end to the BI environment.
5. Decision Support Data: The effectiveness of BI relies on high-quality data gathered
at the operational level. Operational data, distinct from decision support data, forms
the foundation for strategic and tactical managerial decisions within organizations.

Q. Short note on various types of decisions

 1. Effectively Decisions:
 Effectively decisions focus on making choices that lead to desired outcomes
and align with organizational goals.
 These decisions are based on thorough analysis, consideration of alternatives,
and evaluation of potential risks and benefits.
 Effectively decisions often involve strategic planning, resource allocation, and
long-term goal setting.
 They require careful consideration of available information, expertise, and
stakeholder input to ensure optimal outcomes and maximize value for the
organization.
 Effectively decisions contribute to organizational growth, competitiveness,
and sustainability by guiding actions and investments in the right direction.
2. Timely Decisions:
 Timely decisions are made promptly and efficiently to address immediate
needs or capitalize on opportunities.
 These decisions are crucial for responding swiftly to changing market
conditions, customer demands, or competitive threats.
 Timely decisions often require rapid information gathering, analysis, and
prioritization to avoid delays or missed opportunities.
 They are essential for maintaining agility, adaptability, and responsiveness in
fast-paced environments.
 Timely decisions help organizations seize opportunities, mitigate risks, and
stay ahead of the competition by ensuring actions are taken promptly and
decisively.

Q. Types of mathematical model

Various types of mathematical models and systems:

1. Iconic: Iconic models are physical or graphical representations that closely resemble
the system they represent. They often use physical objects or visual elements to depict
relationships and characteristics of the system.
2. Analogical: Analogical models use analogies or similarities between different
systems to represent the behavior of one system based on the known behavior of
another. They rely on the assumption that similar systems exhibit similar behaviors.
3. Symbolic: Symbolic models use mathematical symbols, equations, and formal logic
to represent the relationships and dynamics of a system. They are based on
mathematical principles and are often used to analyze complex systems analytically.
4. Stochastic: Stochastic models incorporate randomness or uncertainty into the
modeling process. They describe systems or processes that involve probabilistic
outcomes or random variations, such as stock prices, weather patterns, or population
dynamics.
5. Deterministic: Deterministic models describe systems or processes that are entirely
predictable, with outcomes determined by known inputs and parameters. They do not
account for randomness or uncertainty and are based on precise mathematical
equations.
6. Static: Static models represent systems or processes at a single point in time or
without considering the passage of time. They describe relationships between
variables at a specific moment and do not account for changes over time.
 7. Dynamic: Dynamic models describe systems or processes that change over time.
They incorporate the element of time into the modeling process and capture how
variables evolve or interact with each other over time. Dynamic models can be
continuous or discrete and may involve differential equations, difference equations, or
state-space models.

Q. Differentiate between olap, statistics and data mining

OLAP Statistics Data Mining

- Interactive analysis of - Summarizing and
multidimensional data from interpreting data using - Discovering patterns and
various angles. mean, median, etc. insights from large datasets.
- Aggregating and - Describing patterns
summarizing large data and relationships in - Uncovering hidden patterns or
volumes for insights. data. trends in data.
- Assessing
- Allows drilling down for significance and - Using techniques like
detailed insights or rolling drawing conclusions clustering, classification, and
up for broader views. from sample data. regression.
- Widely used in - Making predictions or
- Commonly used for science, engineering, recommendations in various
business reporting and economics, and social domains like marketing, finance,
trend analysis. sciences. and healthcare.
- Helps understand data - Assists in predictive modeling,
through dimensions like - Aids in decision- customer segmentation, and risk
time, geography, etc. making and inference. management.

Q. Components of BI

1. Data Source: A data source refers to any location or system from which data
originates. This could include databases, files, applications, APIs, sensors, or any
other means of generating or collecting data.
2. Data Warehouse: A data warehouse is a centralized repository that stores integrated
and structured data from multiple sources. It is designed for querying, analysis, and
reporting, providing a unified view of an organization's data for decision-making
purposes.
3. Data Exploration: Data exploration involves the initial investigation and analysis of
data to discover patterns, trends, and insights. It often includes tasks like data
visualization, summary statistics, and hypothesis testing to gain a deeper
understanding of the data.
4. Data Mining: Data mining is the process of discovering patterns, correlations, and
relationships in large datasets using various techniques from statistics, machine
learning, and database systems. It aims to extract valuable knowledge from data to
support decision-making and prediction.
5. Optimization: Optimization involves finding the best possible solution or outcome
from a set of alternatives, given certain constraints or objectives. In the context of
 data, optimization techniques may be applied to improve processes, algorithms, or
models to maximize efficiency, performance, or resource utilization.
6. Decisions: Decisions are choices made by individuals or organizations based on
available information, preferences, and objectives. In the context of data, decisions
may be informed by data analysis, insights, and predictions generated from data
sources, data warehouses, exploration, mining, and optimization processes.

Q. Abstract representation of system with the help of diagram

 External Conditions: These are factors outside the system that can impact its
operation or behavior. Examples include market conditions, regulatory requirements,
customer preferences, economic trends, and technological advancements.
 System's Transformation Process: This represents the internal operations or
processes within the system that transform inputs into outputs. It includes various
activities, tasks, or functions performed by the system to achieve its objectives.
Examples of transformation processes include manufacturing processes, service
delivery procedures, data processing algorithms, and decision-making mechanisms.
 Internal Conditions: These are the state or conditions within the system that
influence its functioning. Internal conditions may include the system's resources,
capabilities, constraints, rules, policies, and organizational culture. They shape how
the system operates and responds to external stimuli.
 Inputs: Inputs are the resources, data, or stimuli that enter the system from external
sources. They serve as the raw materials or starting point for the system's
transformation process. Inputs can include physical materials, information, energy,
human effort, and financial resources.
  Outputs: Outputs are the results or outcomes produced by the system as a result of its
transformation process. They represent the value created or delivered by the system to
its stakeholders or users. Outputs can take various forms, including products, services,
reports, decisions, feedback, and performance metrics.
 System Performance Factors: These factors represent various aspects of the
system's effectiveness, efficiency, and quality. They reflect how well the system
achieves its objectives and meets the needs of its stakeholders. Common system
performance factors include profitability (financial performance), dependability
(reliability and consistency), overall cost (cost-effectiveness), risk (uncertainty and
exposure), productivity (efficiency and output per unit of input), service (customer
satisfaction and responsiveness), quality (accuracy and reliability), and flexibility
(adaptability and agility).

Q. Various classes of mathematical model

1. Predictive Models:
 Predictive models forecast future outcomes or behavior based on historical
data and patterns.
 Examples include regression analysis, time-series forecasting, and machine
learning algorithms like decision trees, neural networks, and support vector
machines.
2. Pattern Recognition and Learning Models:
 These models identify patterns or regularities in data and make inferences or
decisions based on those patterns.
 Examples include clustering algorithms (e.g., k-means clustering),
classification algorithms (e.g., k-nearest neighbors), and unsupervised learning
techniques (e.g., principal component analysis).
3. Optimization Models:
 Optimization models find the best solution from a set of feasible alternatives,
typically subject to constraints.
 Examples include linear programming, integer programming, nonlinear
programming, and combinatorial optimization techniques like the traveling
salesman problem.
4. Project Management Models:
 Project management models help plan, schedule, and manage projects
effectively to achieve specific objectives within time and resource constraints.
 Examples include Gantt charts, critical path method (CPM), program
evaluation and review technique (PERT), and project scheduling algorithms.
5. Risk Analysis Models:
 Risk analysis models assess and quantify the uncertainty and potential impact
of risks on a system, project, or decision.
 Examples include probabilistic risk assessment, Monte Carlo simulation,
decision trees, and sensitivity analysis.
6. Waiting Line Models:
 Waiting line models, also known as queuing theory, analyze and optimize the
flow of entities through queues or waiting lines.
  Examples include models for analyzing service systems, such as M/M/1
queues, M/M/c queues, and queuing network models.

Q. Activities involved in data mining

1. Interpretation:
 Interpretation involves understanding and explaining the patterns,
relationships, and insights uncovered through data analysis.
 It focuses on gaining a deeper understanding of the underlying factors driving
observed phenomena or outcomes.
 Interpretation aims to answer questions such as "why" or "how" certain
patterns or trends occur in the data.
 Techniques for interpretation include:
 Exploratory data analysis (EDA) to visualize and explore the data's
structure and relationships.
 Descriptive statistics to summarize and describe key features of the
data.
 Qualitative analysis to contextualize findings and identify potential
explanations or implications.
 Interpretation is essential for generating actionable insights, informing
decision-making, and understanding the implications of data-driven findings.
2. Prediction:
 Prediction involves forecasting or estimating future outcomes based on
historical data and observed patterns.
 It focuses on making accurate forecasts or projections of future events or
trends.
 Prediction aims to answer questions such as "what" is likely to happen in the
future based on past data.
 Techniques for prediction include:
 Predictive modeling techniques such as regression analysis, machine
learning algorithms, and time-series forecasting methods.
 Model evaluation and validation to assess the accuracy and reliability
of predictions.
 Prediction is valuable for anticipating future trends, identifying potential risks
or opportunities, and supporting proactive decision-making.
 Prediction is often used in scenarios such as demand forecasting, risk
assessment, financial modeling, and resource planning.

Q. Reasons causing unsatisfactory quality of the input data

1. Elimination:
 Elimination refers to the process of removing or discarding data that is
unnecessary, redundant, or obsolete.
 It involves identifying and eliminating irrelevant, duplicate, or outdated data to
streamline the dataset and improve its quality.
  Elimination can help reduce data storage costs, improve data processing
efficiency, and enhance the overall quality and usability of the dataset.
2. Inspection:
 Inspection involves systematically examining the dataset to identify errors,
inconsistencies, or anomalies.
 It includes visual inspection, automated checks, or manual review of data to
detect and flag potential quality issues.
 Inspection helps uncover data quality problems early in the process, allowing
for timely correction and improvement.
3. Identification:
 Identification is the process of identifying and documenting data quality
issues, root causes, and sources of errors.
 It involves analyzing data patterns, trends, and characteristics to pinpoint areas
of concern and prioritize corrective actions.
 Identification enables data stewards and analysts to understand the nature and
scope of data quality problems and develop targeted solutions.
4. Substitution:
 Substitution involves replacing or updating incorrect or missing data values
with accurate or estimated values.
 It includes techniques such as data imputation, where missing values are filled
in based on statistical methods or predictive models.
 Substitution helps ensure data completeness and accuracy by replacing
unreliable or incomplete data with more reliable estimates or values.

Q. Elements of conclusion Matrix along with various indicators

Q. Types of features selection methods

Q. Categories of classification models