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Module 1: Data Warehousing and Business Analysis

20252m

A Data Warehouse is generally built using which schema for decision support?

(i) Hierarchical Schema
(ii) Star or Snowflake Schema
(iii) Relational Schema
(iv) Network Schema

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Answer: (ii) Star or Snowflake Schema

Data warehouses are optimized for read-heavy analytical queries, not transactional integrity, so they use dimensional modeling instead of normalized relational schemas.

  • Star Schema: one central fact table (measures/metrics) connected directly to several dimension tables (denormalized, descriptive attributes).
  • Snowflake Schema: same idea, but dimension tables are further normalized into sub-dimensions.
        Dim_Time        Dim_Product
             \              /
              \            /
               FACT_TABLE
              /            \
             /              \
        Dim_Customer     Dim_Store

Both schemas are purpose-built for OLAP-style slicing, dicing, and aggregation — which is why (ii) is correct over normalized relational schema (iii), which is used in OLTP systems.

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