1. Computer Brainpower How Can You Use Your Computer to Help You Think? Chapter 13

2. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 2 Objectives 1.Understand how computer power can augment the thought processes that support decision making. 2.Differentiate between systems that support decision making and those that make the decisions themselves. 3.Identify the various types of artificial intelligence systems that support decision making.

3. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 3 Objectives 4.Compare the different types of intelligent agents or bots. 5.Define the role of data warehouses, data marts, and data mining in business decision making.

4. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 4 Computer Brainpower For both simple and complicated decisions, computers can help Four major categories of computer-aided decision software 1.Decision support 2.Artificial intelligence 3.Intelligent agent software 4.Data mining software

5. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 5 A:// Decision Support Software Decisions  Structured - make by applying a formula  Unstructured – no guaranteed way to get a precise right answer

6. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 6 Decision Making With Personal Productivity Software Choices for financing a car that costs $10,000: –Three years at 8.25 percent interest –Four years at 9.25 percent interest –$1,000 down and three years at 8 percent interest What are the structured parts of this decision? The unstructured parts?

7. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 7 Use Excel (DSS) to Analyze Your Decision

8. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 8 Decision Support System Software that uses models, information, and an interactive user interface Lets you look at information in different ways Requires a lot of input from you

9. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 9 Decision Support System Components Model Management –Handles the models A model is a representation of reality Data Management –Details of the case and other information –In Excel example, numeric values of the variables User Interface Management –Manner in which you communicate with the software package, i.e. Excel screen

10. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 10 DSS Analyze Options and Make a Decision

11. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 11 Business Decision Support Systems Deciding where to spend advertising dollars Analyzing sales trend information Analyzing drug interactions Developing airline schedules Developing asset portfolios

12. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 12 Decision Support System Models Accuracy & helpfulness of results depend on: –Correctness of the relationships or formulas –How accurate estimates are –Validity of any underlying assumptions For more information, visit www.mhhe.com/i-serieswww.mhhe.com/i-series

13. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 13 ISeries Ethics, Security & Privacy Mapping Your Nose Lockheed Martin developed a nasal cavity "road map" Surgeons train using a a simulator during virtual nasal operations

14. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 14 Geographic Information System (GIS) Software that allows you to see information in map form Visual representation of information Represents information in layers

15. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 15 Global Positioning System (GPS) A device that tells your current… –Latitude –Longitude –Speed –Direction of movement Geographic information systems (GIS) can be combined with database and GPS technology

16. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 16 Making the Grade Section A: // 1, Software that has models, information, and a user interface to help you make decision is called a (n) __________. 2. A (n) ________ is a representation of reality. 3. Information is stored in layers in a (n) ______________. 4. A(n) _________ is a device that tells you where you are.

17. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 17 B:// Artificial Intelligence (AI) Computer-aided decision software Science of making machines imitate human thinking and behavior  Robots – artificial intelligence devices with simulated human senses

18. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 18 Artificial Intelligence Systems in Business Software is used by: –Financial analysts –Hospitals –Government agencies –Credit card companies Categories: –Expert systems –Neural networks –Genetic algorithms –Fuzzy logic

19. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 19 Expert Systems Called a knowledge-based system Applies reasoning capabilities to reach a conclusion Built for specific applications - domains

20. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 20 Expert Systems Used to solve two kinds of problems –Diagnostic –Prescriptive Helps you to reach a conclusion

21. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 21 Neural Networks Simulates the human ability to classify AI system that learns how to differentiate patterns Credit card companies use neural network alerts for credit usage

22. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 22

23. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 23 Practically Speaking Automatic Speech Understanding Can we create computers that are capable of true learning? Combining AI systems could produce a hybrid intelligence system capable of true learning Your computer could then understand what you’re saying.

24. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 24 Genetic Algorithms Artificial intelligence system that mimics the evolutionary, survival-of- the-fittest process Could generate better solutions to a problem Uses the computer to examine solutions Repeats the process until it finds the best solution

25. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 25

26. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 26 Fuzzy Logic A way of dealing with uncertainty & imprecision Best for situations where variables are shifting constantly and a decision must be made Example – antilock brakes

27. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 27 Making the Grade Section B: // 1. A (n) ______ is an artificial intelligence system that is capable of learning to differentiate patterns. 2. A (n) _______ is an artificial intelligence system that mimics the evolutionary process. 3. A mathematical method of handling imprecise or subjective information is called a(n)_______. 4. An artificial intelligence system that applies reasoning capabilities to reach a conclusion is a(n) ________________.

28. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 28 C:// Intelligent Agents or Bots Software that will automatically perform repetitive tasks on your computer for you Involves finding and tracking information Intelligent agents must "learn" Usually work in the background, so you can still use your computer for other tasks

29. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 29 Major Intelligent Agents Find-and-retrieve agents User agents Monitor and surveillance agents Data-mining agents  Data-mining bots

30. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 30 Find-and-Retrieve Agents Agents travel around the Internet searching Bring back information to you Agents –Buyer agent –Shopping bot

31. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 31 User Agents Agents that help an individual perform computer-related tasks Works in the background Examples –Clippy in Word –Agents that check for e-mail

32. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 32 Monitoring and Surveillance Agents Intelligent agents that perform diagnostic and housekeeping in the background Alert you when they find something of interest Example –Agents that monitor large networks Computer Associates International NASA's Jet Propulsion Laboratory

33. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 33 Making the Grade Section C: // 1. Specialized search engines that look at products and prices on many Web sites and bring back information on what they found are called ______. 2. Gaming bots are an example of ______ agents. 3. Software that will automatically perform repetitive tasks on your computer for you is called a (n) _______________. 4. To be truly “intelligent,” software must be able to ____________.

34. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 34 D:// Data Warehouses and Data Mining Data warehouse –Collection of information from internal and/or external sources; other databases –Organized for decision-making purposes Data mining –Process of extracting information from a data warehouse –Process of searching and exploring –Discover new information and relationships

35. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 35 Data Warehouse

36. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 36 A Data Warehouse is Multidimensional

37. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 37 Data Marts Miniature data warehouse Has a special focus Subset of a data warehouse Aids decision making in a specific focus area

38. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 38 Data Mining Tools Designed to work with a large amount of information where permutations and combinations are possible Objectives of data mining –Prediction –Discovery

39. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 39 Making the Grade Section D: // 1. The process of extracting new information from a data warehouse is called __________. 2. A _________ is a miniature data warehouse with a specific focus. 3. The two main objectives of data mining are ___________ and prediction. 4. A collection of information organized for decision-making purposes is a(n) ________.

40. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 40 E:// “Key” Key Terms artificial intelligence (p. 13.10) data mining (p. 3.20) data warehouse (p. 13.19) DSS (p. 13.5) fuzzy logic (p. 13.15) genetic algorithm (p. 13.14) GIS (p. 13.9) GPS (p. 13.9) intelligent agent bot (p. 13.16) neural network (p. 13.13)

41. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 41 Frequently Asked Questions What is a decision support system? What is the difference between a GIS and GPS? How do businesses use artificial intelligence? My credit card company called to see if I recently made a large purchase. What type of AI system is being used?

42. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 42 FAQs cont. How can I use a genetic algorithm system? Fuzzy logic sounds fuzzy to me. What is it? I want to purchase a "hard to find" musical CD. What kind of intelligent agent can I use? Help! I am tired of filling out forms on the Web. Isn't there an agent that can do this for me?

43. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 43 Hands On Projects E-Commerce Using shopping bots is a good way to do comparative shopping on the Web. What if you want to purchase a gift for someone? Find out if there is a bot for searching for gifts. What questions would be asked to conduct the search? Find online photo albums on the Web. What services are offered?

44. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 44 Hands On Projects On the Web Global positioning systems are very popular in cars and even in golf carts. Find several golf courses in your area that offer the services of a GPS. What are the advantages for a golfer? Some individuals get jobs doing data mining. See what jobs are available for doing this type of work.

45. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 45 Hands On Projects Ethics, Security & Privacy Parental Internet control software is available for parents and others to monitor the e-mail, chat sites, and visited Web sites of children and family members. What are your opinions of this kind of software?

46. McGraw-Hill/Irwin Copyright 2002 by the McGraw-Hill Companies, Inc. All rights reserved. 13 - 46 Hands On Projects Group Activities Find information on artificial robots used in various fields. Make a list and discuss how these robots work. Some people argue that bots are taking jobs away from humans? What is your opinion? Design on paper a decision support system that extends a person's credit limit on their credit card? What data is needed?