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Accounting Information Systems, 9e 1

SOLUTIONS FOR CHAPTER 5


Each end-of-chapter question in the Solutions Manual is tagged to correspond with AACSB, AICPA
and CISA standards, allowing professors to more easily manage the task of reporting outcomes to these
professional and accrediting bodies. Please see the corresponding spreadsheet file for the tagging
information.
Discussion Questions
DQ 5-1 What are the basic components of a database management system (DBMS)?
Discuss the relationship between the components of DBMS and the functional
model of information systems discussed in Chapter 1.
ANS. The four basic components (or features or functions) of a DBMS are tables,
queries, forms, and reports. A good illustration of this is the new Create tab in
Access, which is divided into four sections (Tables, Forms, Reports, and Other,
which includes queries and macros, i.e., application-type features for processing
data). It is probably worthwhile to point out that even a relatively small and
simple database like Access (at least, compared to the larger relational databases
in SAP and Oracle, for example) is still a fully capable DBMS. Note that tables
are the database per se and the other features are what make the software a
DBMS.

It should also be noted that DBMSs almost always have security features, such as
the ability to create passwords for access into the database and access
authorization levels for the various tables and other database objects. For
example, the DBA could restrict a specific user to access to the customer table
only (and no other tables in the database) and to read only access to the
customer table. In this case, the user would not be able to add, change, or delete
data already in the table.
2 Solutions for Chapter 5
The following table can be used for the discussion of the relationships between
(1) the above components of DBMS and (2) the functional model of information
systems discussed in Chapter 1:

Components of DBMS Functional IS Model
Forms Input (also, output)
Tables Storage
Queries Processing
Reports Output

DQ 5-2 How has the technological availability and implementation of DBMSs benefited
decision makers in organizations?
ANS. Database management systems have allowed access to cross-functional/cross-
application data providing insight to decision makers. For example, in an
integrated system, reports from inventory and billing may be available to identify
problem products (customers refusing to pay, or slow payers). Decisions to sell to
a customer on credit may be made instantaneously when unshipped orders,
accounts receivable, credit line information, and payment information are
contained in an integrated database.
DQ 5-3 What is data independence? Why is it important in a comparison of the
application and centralized database approaches to storing data?
ANS. Data independence means that the data is decoupled from the applications
(programs) that use the data. In a file management system, data is subordinate to,
or dependent upon, the application program that uses the data. For example,
adding a field to a record in an application environment would require that the
program that accesses the data also be changed. In a database system, such
program changes are rarely needed.
Also, in a database approach, the data become the focus of attention, the data can
be shared by multiple system applications that support related business processes,
and the data can be accessed through report generation interfaces and ad hoc
query interfaces, which allow users to ask questions about the data in the
database.
Accounting Information Systems, 9e 3
DQ 5-4 How is a DBMS different from a database?
ANS. Database refers only to the tables that store data, while DBMS also includes the
features or components delineated in DQ 5-1 (e.g., forms, queries, and reports).
Also, the answer is that without a DBMS, data in a database are freely accessible
and without internal controls for security.

DQ 5-5 What are the differences between a logical view and a physical view of a
database? Which would be more important for accountants who are involved in
the design of a database that will store business event information?
ANS. Relational database tables are logical views of data that are physically stored in
the database. The logical database view is how the data appear to be stored when
the user accesses the database; that is, it is the way the user sees the database. The
logical view provides a structure that the user can use to extract data from the
database. The physical view is a representation of the way in which the data are
stored on the disk or other storage medium used by the database management
system. The physical view of the data often has little relation to the logical view.
Thus, accountants who use DBMSs do not need to worry about the details of the
physical storage of the data. They do, however, need to understand the logical
view of the data.
DQ 5-6 What is three-tier architecture? What are some of its advantages over two-tier
architecture?
ANS. A three-tier architecture divides an IS into three partsthe users interface or
workstation, the applications (processing), and the database (input/storage). This
is an advantage because it becomes much easier to make changes (e.g., updates
and new software) on any one of these tiers without having to worry about
affecting the other two. A good example of the ease of changing tiers is SAP
changing from an Oracle database to a Microsoft Sequel database without being
concerned about the impact of this change on its application modules. The older
two-tier architecture usually combines the application and database levels, making
it difficult to switch or change either tier without affecting the other (e.g., COBOL
mixes processing code and data storage code in the same program).
DQ 5-7 What problems are solved by transforming a set of relational tables from second
normal form (2NF) to third normal form (3NF)?
ANS. Transforming a set of relational database tables from 2NF to 3NF eliminates any
transitive dependencies that exist in the 2NF version of the tables. See the section
Third Normal Form (3NF) in Chapter 5.

4 Solutions for Chapter 5
DQ 5-8 What are the different logical database models (or structures)?

ANS. The text discusses the following four:
Hierarchical databases
Child records may only have one parent record
Cannot sustain complex data structures
Network databases
Overcame problems of hierarchical
Child record can have more than one parent
Eclipsed by relational databases
Relational databases
Data logically organized into two dimensional tables
Vast improvement over hierarchical or network database models
Able to handle complex queries
Allows only text and numerical data to be stored
Does not allow the inclusion of complex object types such as graphics,
audio, video, or geographic information
Object oriented databases
Overcomes the limitations of relational databases
Allows the storage of complex objects, e.g., video clips
An object can store attributes and instructions for actions that can be
performed on the object or its attributes
DQ 5-9 The centralized database approach to data management is a good alternative to
using enterprise systems such as ERP and CRM. Do you agree? Discuss fully.
ANS. Students should not agree with the statement. ERP and CRM systems are built on
databases; they do not replace them. The effectiveness of ERP and CRM systems
depends on how well they interact with the databases into which they are
integrated. Some ERP and CRM systems include their own databases, but most
are designed to work with existing databases provided by other vendors.
DQ 5-10 Why have object-oriented databases not replaced relational databases in business
information system applications?
ANS. Although many researchers have argued that object-oriented DBMSs are superior
to relational DBMSs, most organizations still use relational DBMSs. These
organizations have large amounts of money invested in their existing relational
DBMSs, related software, hardware, and training of personnel. The main
advantage of an object-oriented model is the storage of complex data types.
However, many relational DBMSs (sometimes called object-relational DBMSs)
have added the capability to store and manipulate these complex data types.
Although software developers continue to refine object-oriented DBMSs, most
companies today seem to be satisfied with relational or object-relational DBMSs
and do not see a sufficient advantage in their replacement.
Accounting Information Systems, 9e 5
DQ 5-11 Demonstrate your understanding of some of the coding schemes discussed in
Technology Summary 5.2 by indicating which type of code is represented by each
of the following. You should be prepared to explain and defend your answers.
ANS. The following coding schemes apply:
a. The student ID codes used at your college: This answer, of course, will vary
from institution to institution. For example, the student IDs at Bentley College
are assigned in straight sequential order.
We know of some universities that use social security numbers as the student
ID. A social security number (SSN) is an example of a block code, comprising
the following groups of digits:
The first three digits are an area code. Currently, these three digits indicate
the state in which the holder lived when applying for the SSN. The state is
derived from the holders postal ZIP code. Formerly, these three digits
indicated the specific social security field office that issued the card.
The middle two digits are a group number that has no geographic or data
significance. Rather, this block breaks the SSNs into conveniently sized
blocks for use in internal operations and order of issuance.
The last four digits are a sequential serial number that is assigned in
straight numerical sequence from 0001 to 9999 within each group.
b. MICR codes used by the banking industry: MICR codes that are imprinted on
bank checks and deposit slips evidence aspects of several different coding
schemes: significant digit, self-checking digit, and sequential.
For instance, bank checks typically have a nine-digit significant digit code,
located in the lower-left corner of the check, which is used for routing and
sorting the check. Assuming that these nine digits are 021302268, you could
analyze this code as follows:
The first four digits, 0213, are assigned as follows:
o The first two digits, 02, identifies Blank Banks Federal Reserve
district; 01 might stand for New England, 02 for New York, and so on.
o The third digit identifies the Federal Reserve Office (head office or
branch) or a special collection arrangement.
o The fourth digit shows Blank Banks state or a special collection
arrangement.
The next four digits, 0226, represent the banks unique institutional
identifier.
The ninth digit, 5, is a self-checking digit (or check digit), which,
combined with the first eight digits, verifies the routing numbers accuracy
in computer processing.
6 Solutions for Chapter 5
The account number (lets assume number 123407889 for our example) would
typically be another significant digit code, where the first two digits, 12, show
the account type and the next seven digits, 3407889, represent the specific
account.
Finally, the check number is an example of a sequential code.
c. The customer codes used in Figure 5.3: These codes, consisting entirely of
alphabetic characters, are examples of a mnemonic coding method. The code
ETC stands for Bikes Et Cetera, and so forth. In this example, the alpha
characters are taken in some way from the full names of the customers, a
device that certainly aids a human operator in quickly identifying the
customer, but one that is practical only where the number of different
customers is reasonably small.
DQ 5-12 What are the comparative advantages of the various data coding types discussed
in Technology Summary 5.2 when applied to each of the following? Discuss fully.
Note: In the following answer, we do not separate the discussion of employee,
vendor, and customer ID numbers because the factors that one would consider in
designing a coding scheme for each would be similar. Only when a particular
consideration would apply to one of the three and not to the others will we
mention it.
ANS. Some of the key points (in no order of importance) that students might have
included in their answers are the following:
Computers manipulate numeric data more efficiently than they handle alpha
characters. On the other hand, humans usually find alphabetic codes easier to
remember. This point is a factor to discuss in connection with the relative
advantages of mnemonic coding.
Another design consideration is the size of the database. For instance, a
mnemonic coding scheme might have some merit where the number of
customers (or vendors or employees) is small but probably is impractical for
large databases.
Sequential, block, and mnemonic coding methods provide limited ability to
classify objects in the database according to common attributes. A principal
advantage of significant digit and hierarchical codes is that they facilitate the
classification of data.
The general ledger chart of accounts is an application for which a hierarchical
coding scheme is especially germane.
Accounting Information Systems, 9e 7
A check digit is often used in practice in the case of customer codes. The main
purpose of the self-checking digit code is to ensure that the ID number is
keyed in accurately. When the customer is doing the keying (e.g., through a
banks ATM terminal), the check digit is advantageous. Check digits are
particularly helpful when the master data is not available for comparison to
the input code. If the master data is available, the master record that matches
the code can be retrieved from the master data table and presented to the data
entry clerk for comparison to the input source data. This should ensure that the
correct code has been entered. When master data is available, the importance
of controls such as check digit is diminished.

Short Problems
SP 5-1 ANS. Allowing for some variation among students, the solution should look like the
following E-R diagram:

Some students may show the relationship table (consisting of two 1:N
relationships) for the N:M relationship between INVENTORY and SHIPMENT:

SP 5-2 ANS. The two entity-relationship pairs might be described as follows:
1. Shipments are made to customers. A customer may receive many (N)
shipments, but each shipment is for only one (1) customer.
2. Inventory is included in shipments. A shipment may contain many (N)
inventory items, and inventory items (by type) may be included in many
(M) shipments, an N to M relationship.
SP 5-3 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. The solutions
should include a CUSTOMERS table, a SHIPMENTS table, an INVENTORY
table, and a relationship table linking SHIPMENTS and INVENTORY. The
relationship table is needed because SHIPMENTS and INVENTORY are in an
N:M relationship, as noted in the solutions to SP 5-1 and SP 5-2. Attributes in the
table will vary greatly among students. See Figure 10.10 in the textbook for
examples of these tables and their attributes. Be sure that the students have linked
the tables together in their solutions.
8 Solutions for Chapter 5
SP5-4 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. A common error
is to design the query with only the INVENTORY and CUSTOMERS tables. This
will result in a random combination of customer names and inventory
descriptions. It is necessary to have all four tables, with the tables linked, in the
query design for correct results to be produced. Check the query design printout to
ensure that all four tables and links are included.

Problems
P 5-1 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. In any case, the
solutions should include a CUSTOMERS table, a data entry screen (for example,
a form in Microsoft Access) that allows data entry into the table, and a printout of
the number of records you instructed students to include in the table.
P 5-2 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. The solutions
should include a customer report (for example, a report in Microsoft Access) that
includes the column headings and subtotals required by the problem.
P 5-3 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. The solutions
should include a customer data entry form with the indicated controls
(implemented, for example, using the Validation Rule property in Microsoft
Access or a trigger in Oracle). This problem makes a good team assignment with
a short in-class presentation of the solution by the team.
P 5-4 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. The solutions
will include the same elements as the solutions to P 5-1 through P 5-3 but with a
different data set, which can be useful if team assignments with in-class
presentations are used (as discussed in the solution to P 5-3).
P 5-5 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. The solutions
should include four queries (called views in some database software). Some
students may document the queries by creating reports based on those queries, but
that is not required.
Accounting Information Systems, 9e 9
P 5-6 ANS. The solutions provided by your students will vary depending on which database
software package they use and their ability in using that package. The following
figure shows one possible implementation in Microsoft Access. Other correct
solutions are possible; for example, the implementation shown in the figure
assumes that any partner can make a contact and that category descriptions are
stored in a separate (lookup type) table. Note that the City, State, and ZIP values
are stored in a separate table. Including these fields in the CLIENTS table would
create two transitive dependencies and thus violate 3NF.

P 5-7 ANS.
a. Students should classify the entities in this situation into the following
categories:
Resources Events Agents

INVENTORY PURCHASE
ORDERS
VENDORS

SHIPMENTS PURCHASE
CLERKS

b. The six entity-relationship pairs might be described as follows:
1. Purchase clerks process or generate purchase orders. Each purchase order
is processed by only one purchase clerk (1), but a purchase clerk can
process many purchase orders (N), a 1 to N relationship.
2. Purchase orders are sent to vendors. A vendor may receive many (N)
orders, but each purchase order is for only one (1) vendor, an N to 1
relationship.
3. Purchase orders are for inventory items. Each purchase order may contain
many items (M), and inventory items may be included on many purchase
orders (N), an M to N relationship.
10 Solutions for Chapter 5
4. Purchase orders are filled by shipments. Each shipment is for one purchase
order (1), but many shipments (N) may be required to fill an order, a 1 to
N relationship.
5. Inventory items are received in shipments. Inventory items (M) may be
included in many shipments, and each shipment (N) may contain many
inventory items, an M to N relationship.
6. Shipments are made by vendors. Many shipments (N) are made from a
vendor, but each shipment is made from only one vendor (1), an N to 1
relationship.
P5-8 ANS. The papers developed by students in response to this problem will vary widely.
Some articles that might be useful to your students include the following:
Scott, Robert W. (2006, April). How smart is business intelligence? Accounting
Technology 22(3): 5.
Rosner, Rebecca L., Christie L. Comunale, and Thomas R. Sexton. (2006, June).
Assessing Materiality. CPA Journal 76(6): 2628.
Bensic, M., Natasa Sarlija, and Marijana Zekic-Susac. (2005). Modeling small-
business credit scoring by using logistic regression, neural networks and
decision trees. Intelligent Systems in Accounting, Finance & Management
13(3): 133150.
Dirsmith, Mark W., Michael J. Fischer, and Sajay Samuel. (2005). The socio-
political constitution of expert systems and global knowledge expertise within
Big 5(4) public accounting firms. International Journal of Technology, Policy
& Management 5(4).
Reber, Beat, Bob Berry, and Steve Toms. (2005). Predicting mispricing of initial
public offerings. Intelligent Systems in Accounting, Finance & Management
13(1): 4159.
Koh, Hian Chye. (2004). Going concern prediction using data mining techniques.
Managerial Auditing Journal 19(3): 462-476.
Wie Zhang, Arun, Cao Qing, and Marc J. Schniederjans. (2004, Spring). Neural
network earnings per share forecasting models: A comparative analysis of
alternative methods. Decision Sciences 35(2): 205237.
DeVries, Peter, Elizabeth V. Mulig, and Kristie A. Lowery. (2004). A useful tool
for data scanning in executive information systems: schematic faces.
Industrial Management & Data Systems 104(8): 644649.
Arnold, V., P. Collier, S. Leech, and S. Sutton (2004, March). Impact of intelligent
decision aids on expert and novice decision-makers judgments. Accounting &
Finance 44(1): 125.
Hwang, S.-S., T. Shin, and I. Han (2004, February). CRAS-CBR: Internal control
risk assessment system using case-based reasoning. Expert Systems, 21(1):
2233.
Accounting Information Systems, 9e 11
OLeary, D. (2003, December). Auditor environmental assessments. International
Journal of Accounting Information Systems, 4(4): 275294.
Mauldin, E. (2003, Spring). An experimental examination of information
technology and compensation structure complementarities in an expert system
context. Journal of Information Systems, 17(1): 1941.
Wheeler, P., and D. Jones (2003, Spring). The effects of exclusive user choice of
decision aid features on decision making. Journal of Information Systems
17(1): 6383.
Lenard, M. (2003, Spring). Knowledge acquisition and memory effects involving
an expert system designed as a learning tool for internal control assessment.
Decision Sciences Journal of Innovative Education 1(1): 2340.
Hrisak, D. (2001, October). How can expert systems benefit your company?
Managing the General Ledger 1(10): 1011.
Herz, P., and J. Schultz (1999). The role of procedural and declarative knowledge
in performing accounting tasks. Behavioral Research in Accounting 11: 125.
Qureshi, A., J. Shim, and J. Siegel (1998, September). Artificial intelligence in
accounting and business, National Public Accountant 43(7): 1318.
Davis, J., A. Massey, and R. Lovell (1997, December). Supporting a complex
audit judgment task: An expert network approach. European Journal of
Operational Research 103(2): 350372.
Foltin, C., and L. Garceau (1996). Beyond expert systems: Neural networks in
accounting. National Public Accountant 41(6): 2632.
Davis, J., and S. Hicks (1995, January). Decision support software for tax. Tax
Adviser 26(1): 5457.
McDuffie, R., and D. Oden (1994, January). Tax expert systems and future
development. CPA Journal 64(1): 7375.
Depending on the experience of your students in creating research papers, you
might want to provide them with some of this list or the entire list of articles to
get them started.
P 5-9 ANS. The table includes two transitive dependencies: COMPID is transitively
dependent on TAGNUMB, and EMPNAME is transitively dependent on
EMPNUM. Transforming this table into a set of relational tables that are in 3NF
requires the creation of three separate tables. A good way to accomplish this is to
move through first, second, and then third normal form transformations as
follows:
12 Solutions for Chapter 5
The first step is to put the table into first normal form (1NF).
SOFTWARE
PACKID TAGNUM COMPID INSTDATE SOFT
COST
EMPNUM EMPNAME LOCATION
AC01 32808 M759 9/13/06 754.95 611 Dinh, Melissa Accounting
DB32 32808 M759 12/13/06 380.00 611 Dinh, Melissa Accounting
DB32 37691 B121 06/15/06 380.00 124 Alvarez, Ramon Sales
DB33 57772 C007 05/27/06 412.77 567 Feinstein, Betty Info Systems
WP08 37691 B121 06/15/06 227.50 124 Alvarez, Ramon Sales
WP08 57772 C007 05/27/06 170.24 567 Feinstein, Betty Info Systems
WP09 59836 B221 10/30/06 35.00 124 Alvarez, Ramon Home
WP09 77740 M759 05/27/06 35.00 567 Feinstein, Betty Home
The following tables are in second normal form (2NF). Without any attributes
such as package name, there is no need for a relation with the key PACKID.
COMPUTER
TAGNUM COMPID EMPNUM EMPNAME LOCATION
32808 M759 611 Dinh, Melissa Accounting
37691 B121 124 Alvarez, Ramon Sales
57772 C007 567 Feinstein, Betty Info Systems
59836 B221 124 Alvarez, Ramon Home
77740 M759 567 Feinstein, Betty Home

SOFTWARE
PACKID TAGNUM INSTDATE SOFTCOST
AC01 32808 9/13/06 754.95
DB32 32808 12/13/06 380.00
DB32 37691 06/15/06 380.00
DB33 57772 05/27/06 412.77
WP08 37691 06/15/06 227.50
WP08 57772 05/27/06 170.24
Accounting Information Systems, 9e 13
WP09 59836 10/30/06 35.00
WP09 77740 05/27/06 35.00
The following tables are in third normal form (3NF).
SOFTWARE
PACKID TAGNUM INSTDATE SOFTCOST
AC01 32808 9/13/06 754.95
DB32 32808 12/13/06 380.00
DB32 37691 06/15/06 380.00
DB33 57772 05/27/06 412.77
WP08 37691 06/15/06 227.50
WP08 57772 05/27/06 170.24
WP09 59836 10/30/06 35.00
WP09 77740 05/27/06 35.00

COMPUTER
TAGNUM COMPID EMPNUM LOCATION
32808 M759 611 Accounting
37691 B121 124 Sales
57772 C007 567 Info Systems
59836 B221 124 Home
77740 M759 567 Home

EMPLOYEE
EMPNUM EMPNAME
611 Dinh, Melissa
124 Alvarez, Ramon
67 Feinstein, Betty

14 Solutions for Chapter 5
P 5-10 ANS.
Part a.
Shaded Attribute(s) = Primary Key
First Normal Form (1NF)

Gift
Date
Donor
Name
Donor
Number
Receipt
Number Fund ID Fund Name Amount
12/5/2009 A. Eddy 109 1201 10 Academic Excellence $100
12/5/2009 A. Eddy 109 1201 40 Athletic Scholarships $100
12/17/2009 B. Lester 116 1317 99 Unrestricted Gift $500
12/17/2009 B. Green 102 1318 40 Athletic Scholarships $50
12/17/2009 B. Green 102 1318 60 Department of
Accounting
$100
12/17/2009 B. Green 102 1318 10 Academic Excellence $100
12/19/2009 R. Curtis 210 1411 10 Academic Excellence $500
12/19/2009 R. Curtis 210 1411 60 Department of
Accounting
$500
12/31/2009 G. Smith 221 1573 60 Department of
Accounting
$1,000
12/31/2009 G. Smith 221 1573 40 Athletic Scholarships $25

Second Normal Form (2NF)
Receipt
Receipt Number Date Donor Name Donor Number
1201 12/5/2009 A. Eddy 109
1317 12/17/2009 B. Lester 116
1318 12/17/2009 B. Green 102
1411 12/19/2009 R. Curtis 210
1573 12/31/2009 G. Smith 221

Accounting Information Systems, 9e 15
Fund
Fund ID Fund Name
10 Academic Excellence
40 Athletic Scholarships
60 Department of Accounting
99 Unrestricted Gift

Gift
Receipt Number Fund ID Amount
1201 10 $100
1201 40 $100
1317 99 $500
1318 40 $50
1318 60 $100
1318 10 $100
1411 10 $500
1411 60 $500
1573 60 $1,000
1573 40 $25

Third Normal Form (3NF)
Receipt
Receipt Number Date Donor Number
1201 12/5/2009 109
1317 12/17/2009 116
1318 12/17/2009 102
1411 12/19/2009 210
1573 12/31/2009 221

16 Solutions for Chapter 5
Gift
Receipt Number Fund ID Amount
1201 10 $100
1201 40 $100
1317 99 $500
1318 40 $50
1318 60 $100
1318 10 $100
1411 10 $500
1411 60 $500
1573 60 $1,000
1573 40 $25
Donor
Donor Number Donor Name
109 A. Eddy
116 B. Lester
102 B. Green
210 R. Curtis
221 G. Smith

Fund
Fund ID Fund Name
10 Academic Excellence
40 Athletic Scholarships
60 Department of Accounting
99 Unrestricted Gift
Part b. Based on the focus of your course, your requirements of the students may
be at any level of implementation desired, ranging from creating tables only,
through a complete system with user interfaces and standard reports.
Accounting Information Systems, 9e 17
P 5-11 ANS. The papers developed by students in response to this problem will vary widely.
The URL for SAP is http://www.sap.com, and the URL for Siebel is
http://www.oracle.com/siebel.
P 5-12 ANS. The following student coding schemes illustrate the coding types described in
Technology Summary 5.2. The strengths and weaknesses of each coding scheme
will vary with the specifics of the codes created. However, see Technology
Summary 5.2 which provides some of the main strengths and weaknesses for each
coding type.
a. Sequential (serial) coding:
001 = First student
002 = Second student.
etc.
b. Block Coding:
00011000 = Undergraduate students
10012000 = Graduate students
c. Significant digit coding:
1 0 3 548
1 = Undergraduate/graduate classification
0 = Academic college identifier
3 = Academic major
548 = Sequentially assigned unique customer identifier
d. Hierarchical coding:
17 43 548
17 = Country of origin
43 = Section of country
548 = Sequentially assigned unique student identifier
e. Mnemonic coding:
SSMITH = Stan Smith
MHAMMER = Mike Hammer
18 Solutions for Chapter 5
P 5-13 ANS. The solutions developed by students in response to this problem will vary
widely. An example answer would be infoRouters knowledge management
system at http://www.inforouter.com/Knowledge_Management.asp. The list of
how infoRouter helps achieve knowledge management might be:
Promotes sharing and collaboration of organizational knowledge and
intellectual assets
Easy access to new content
Automatic notifications and alerts of new and edited documents
Robust tools to search and retrieve existing information and knowledge so
that these items can be reused without having to be regenerated
Classification of information for efficient access and retrieval
Meta Data definitions so that documents and information can be accessed
easily and based on consistent criteria
Templates to create information so that all information is in accordance
with organizational standards
Knowledge Management Portals to distribute content in a timely manner
A notification system that produces an informed community of users
A communication and collaboration environment that supports and allows
the community of users to contribute information and knowledge
(Alternatively, as a longer problem, you can have each student find two
knowledge management systems and compare and contrast the features of the
two systems.)
P 5-14 ANS. The simplest decision model would be to assign all twelve factors equal
decision weights, either 1 if the factor is positive (e.g., apartments come with
washers and dryers) or 0 if negative (e.g., apartments do not have washers and
dryers). If this model is used, then all of the apartments have the same resulting
decision value (= 6), since each apartment has 6 positive and 6 negative factors.
Of course, it is unlikely that the students will value all twelve factors equally, or
that they will agree among themselves about the relative decision weights of the
twelve factors. Some interesting discussion (and hopefully insight) should result
when the students realize how subjective such models are. Embedding a
decision model in a spreadsheet does not make the result any less subjective
than running the model in a decision makers own wetware.