The Value of Data CLOUD-DIGITAL-LEADER Practice Questions (Page 6)

Questions 26–29

1. 26foundation · easy

   How can an organization create value from external data sources?

   • ABy ignoring external data because it is not owned by the organization.
   • BBy storing external data without any analysis to meet compliance requirements.
   • CBy replacing all internal data with external data to reduce storage costs.
   • DBy enriching its internal data with third-party data to gain additional insights.
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A startup wants to build a recommendation engine that uses user behavior data (clicks, views) and product descriptions (text). They have no on-premises infrastructure and want to minimize upfront costs. What is the best approach?

   • AUse cloud services to store the data and run machine learning models on demand.
   • BUse a spreadsheet to store and analyze the data.
   • CBuild a local data center to ensure data privacy.
   • DWait until they have enough data before starting any analysis.
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A traditional retailer is undergoing digital transformation. They have a wealth of historical sales data but lack the skills to analyze it. They also have a limited budget and need to show quick wins to stakeholders. They are considering building an in-house data team versus using a cloud-based analytics service. What is the most balanced approach?

   • AWait until the budget allows for a full in-house team.
   • BInvest heavily in building an in-house data team from the start.
   • CUse only external consultants for all data analysis.
   • DStart with a cloud-based analytics service to get quick insights, and gradually build in-house skills.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   What is the primary purpose of a data warehouse?

   • ATo provide a flexible schema for storing semi-structured data like JSON.
   • BTo store raw, unprocessed data in its native format for future use.
   • CTo support online transaction processing (OLTP) for day-to-day operations.
   • DTo store structured, processed data optimized for analysis and reporting.
   Reveal Solution Discussion Select an answer first