Management Information System (MIS) Practice Exam

What type of processing is utilized for updating a database in real-time as transactions occur?

1. Batch processing

2. Data mining

3. Sequential processing

4. Real-time processing

The correct answer is: Real-time processing

Real-time processing is utilized for updating a database as transactions occur because it enables immediate availability of data following a transaction. This type of processing ensures that any updates are reflected in the database instantly, allowing users to access the most current information without delay. This is particularly critical in environments where timely decisions and actions are required, such as online banking, e-commerce, and inventory management systems. In such settings, any lag in data updates could lead to erroneous decisions based on outdated information. In contrast, batch processing involves accumulating data and processing it all at once at a later time, which does not support real-time updates. Data mining refers to the analysis of large datasets to uncover patterns and insights, and it doesn't pertain to the immediate updating of databases. Sequential processing involves handling data one piece at a time in a specific sequence, which also does not facilitate real-time updates like real-time processing does. Thus, real-time processing is essential for scenarios that demand instantaneous data accuracy and availability.