IIBA IIBA Certifications CBAP Questions & Answers

• Question 321:

  A large insurance company wants to buy a new claims processing system or upgrade one of its two existing systems. Each year the claims department is given a $3,5 million budget to spend. Time is of the essence since there are some regulatory changes that will be coming the following year that will require several features that currently neither one of the two claims systems currently support.

  There are eight stakeholders involved in this initiative. There are local to where the claim systems are managed, while five are located across the country. The business analyst (BA) struggled to get all stakeholders to agree on the desired features but ultimately got agreement on ten identified key features for the new claims systems. The BA was able to build a current state and future state process model which included all ten key features.

  System A processes 75% of the company's claims. It is 5 years old and the claim processors love it because it is easy to use. However it must go offline for two hours each day. The code is very modular so it does have flexibility to be modified. To upgrade system A to have all ten features it would cost %5 million. System A would be at capacity if it were to process all of the company's claims.

  System B processes 25% of the company's claims. It is an older mainframe system, but rarely goes offline. It could easily handle double the number of claims that system A processes. However, it has a lot of legacy code and would cost $6 million to upgrade.

  Both systems have some of the ten desired key features. But neither system has all ten. The cost to buy a new system would be $7 million.

  Below is the estimated cost for each feature in priority order.

  

  During elicitation the BA must understand the non-functional requirements. What non-functional requirements does System B support over System A?

  A. Compatibility

  B. Scalability

  C. Compliance

  D. Usability

  Correct Answer: D

• Question 322:

  A company with a big information technology (IT) department has hired a lead business analyst (BA) to enhance its business analysis practices. The lead BA discovers that sponsors are not satisfied with project outcomes. Developers complain about incomplete, ambiguous, and changing requirements. All stakeholders, including project managers, are blaming long cycles of analysis for the delays. The business analysts, in turn, feel overwhelmed with the number of projects and frustrated by the lack of collaboration from reviewers of their deliverables. All of the evidence is anecdotal and none of the groups could strongly substantiate their options.

  Even after dozens of reviews, some stakeholders refuse to sign off on the requirements specification documents because of a few questionable requirements. This puts the projects at risk and creates tension between the participants. What should the lead BA do first?

  A. Set limits on duration of sign-offs and the number of reviews

  B. Track approvals at the level of individual requirements

  C. Escalate the problem to the executive management

  D. Offer the stakeholders incentives to sign off documents sooner

  Correct Answer: B

• Question 323:

  A company with a big information technology (IT) department has hired a lead business analyst (BA) to enhance its business analysis practices. The lead BA discovers that sponsors are not satisfied with project outcomes. Developers complain about incomplete, ambiguous, and changing requirements. All stakeholders, including project managers, are blaming long cycles of analysis for the delays. The business analysts, in turn, feel overwhelmed with the number of projects and frustrated by the lack of collaboration from reviewers of their deliverables. All of the evidence is anecdotal and none of the groups could strongly substantiate their options.

  The lead BA wants the BAs to report anticipated and actual completion dates for their deliverables, as well as the time spent on planned and unplanned activities. What is the lead BA trying to do by analyzing the results of such measurements?

  A. Establish an equitable compensation system

  B. Identify typical missing or wasteful activities

  C. Ensure even workloads of the BA

  D. Motivate the BA to work better

  Correct Answer: C

• Question 324:

  A company with a big information technology (IT) department has hired a lead business analyst (BA) to enhance its business analysis practices. The lead BA discovers that sponsors are not satisfied with project outcomes. Developers complain about incomplete, ambiguous, and changing requirements. All stakeholders, including project managers, are blaming long cycles of analysis for the delays. The business analysts, in turn, feel overwhelmed with the number of projects and frustrated by the lack of collaboration from reviewers of their deliverables. All of the evidence is anecdotal and none of the groups could strongly substantiate their options.

  What should the lead BA implement to identify areas of improvement?

  A. A BA time tracking system

  B. Templates for BAs to use

  C. Workload plans of the BA

  D. Key performance measures

  Correct Answer: C

• Question 325:

  A non-profit utility company has 900 employees, a majority of whom are hourly employees and must track their time using a paper-based process. A few years ago the Director of Human Resources purchased a software system to eliminate the current paper-based time reporting process. No requirements specific to the utility company were defined prior to the purchase. A team was formed to implement the software. During implementation process, the team discovered the software lacked functionality and was not robust enough to support the general ledger requirements. The company stopped the effort and incurred a $500,000 USD loss on the cost of the software.

  This year, the Director of Finance requested that a team investigate the current paper-based time reporting process and recommend solutions. The Director of Finance feels that the Director of Human Resources must be involved as a critical stakeholder. The Director of Human Resources is still bitter about the last effort because the process `stopped'.

  Which of the following is included in performing a stakeholder analysis?

  A. Recommend excluding the Director of Human Resources as a stakeholder

  B. Compare the expertise of the Director of Human Resources to other stakeholders

  C. Implement all of the Director of Human Resources suggestions to relieve tension

  D. Develop a risk plan to anticipate negative behavior from the Director of Human Resources

  Correct Answer: B

• Question 326:

  A non-profit utility company has 900 employees, a majority of whom are hourly employees and must track their time using a paper-based process. A few years ago the Director of Human Resources purchased a software system to eliminate the current paper-based time reporting process. No requirements specific to the utility company were defined prior to the purchase. A team was formed to implement the software. During implementation process, the team discovered the software lacked functionality and was not robust enough to support the general ledger requirements. The company stopped the effort and incurred a $500,000 USD loss on the cost of the software.

  This year, the Director of Finance requested that a team investigate the current paper-based time reporting process and recommend solutions. The Director of Finance feels that the Director of Human Resources must be involved as a critical stakeholder. The Director of Human Resources is still bitter about the last effort because the process `stopped'.

  During a brainstorming session on improvement opportunities, the Director of Human Resources repeatedly interrupts the group and states why the proposed ideas will not work. Which approach should the business analyst (BA) take to refocus the group?

  A. Reschedule the session without the Director of Human Resources

  B. Ask the Director of Human Resources to observe in

  C. Pause the activity and reiterate the rules to the entire group

  D. Continue the activity with the group and provide a report

  Correct Answer: B

• Question 327:

  A non-profit utility company has 900 employees, a majority of whom are hourly employees and must track their time using a paper-based process. A few years ago the Director of Human Resources purchased a software system to eliminate the current paper-based time reporting process. No requirements specific to the utility company were defined prior to the purchase. A team was formed to implement the software. During implementation process, the team discovered the software lacked functionality and was not robust enough to support the general ledger requirements. The company stopped the effort and incurred a $500,000 USD loss on the cost of the software.

  This year, the Director of Finance requested that a team investigate the current paper-based time reporting process and recommend solutions. The Director of Finance feels that the Director of Human Resources must be involved as a critical stakeholder. The Director of Human Resources is still bitter about the last effort because the process `stopped'.

  During a design review meeting to discuss the future state, all stakeholders are in agreement except the Director of Human Resources. Who makes the final decision?

  A. All stakeholders must be in complete agreement

  B. The sponsor

  C. The BA

  D. Those identified in the governance approach

  Correct Answer: D

• Question 328:

  

  The table illustrates the statement of cash flows for a courier company for the last fiscal year.

  Due to aggressive market competition, the management of the company performed a strategy review and based on their findings and the current market conditions they came up with strategic and tactical changes in order to keep a competitive market position.

  In order to strengthen customer retention strategies through a new competitive advantage, the company is considering implementing a live parcel tracking system. The added value will be that the customers may determine the exact location of the parcel whether it is in a warehouse, crossing the ocean through an overseas ship, or travelling in a delivery truck at any time. The system tracks the location of the parcel by tracking the vehicle in which it is contained. However, for a group of old delivery trucks, it was noticed that the engine sound and vibration disturbed the tracking signal and caused interruptions. Therefore, the tracking does not perform accurately on these vehicles. Although the majority of management would like to sell these vehicles and replace them with newer ones, the Chief Financial Officer (CFO) was strongly against that approach. The CFO argued that instead of hanging tracking devices on the trucks' body, they can have the truck drivers manually send the truck location from a hand held mobile device every 30 minutes.

  The company has a total of 134 old delivery trucks that have been in service for 10 years. Each vehicle was bought at a price of $22,000. Depreciation is done using a straight line basis and it is estimated that the vehicle depreciates at $1000 per year. The estimated salvage value per vehicle is about $3,000.

  Another area of tactical improvement for the courier company is pricing. The management strongly believes that they can start a price war with the most aggressive competitor. Management thinks, with their variable cost of $4 per parcel and fixed cost of $6 per parcel, they can win the market. However, after implementing the tracking solution, fixed cost will jump to $8 per parcel which made management reconsider their options. The competitor has variable costs of $5 per parcel and fixed costs o $7 per parcel.

  In order to align with the added value required from the parcel tracking solution that would be an important requirements' category for the BA to give more focus?

  A. Transition

  B. Process

  C. Stakeholder

  D. Non functional

  Correct Answer: C

• Question 329:

  

  The table illustrates the statement of cash flows for a courier company for the last fiscal year.

  Due to aggressive market competition, the management of the company performed a strategy review and based on their findings and the current market conditions they came up with strategic and tactical changes in order to keep a competitive market position.

  In order to strengthen customer retention strategies through a new competitive advantage, the company is considering implementing a live parcel tracking system. The added value will be that the customers may determine the exact location of the parcel whether it is in a warehouse, crossing the ocean through an overseas ship, or travelling in a delivery truck at any time. The system tracks the location of the parcel by tracking the vehicle in which it is contained. However, for a group of old delivery trucks, it was noticed that the engine sound and vibration disturbed the tracking signal and caused interruptions. Therefore, the tracking does not perform accurately on these vehicles. Although the majority of management would like to sell these vehicles and replace them with newer ones, the Chief Financial Officer (CFO) was strongly against that approach. The CFO argued that instead of hanging tracking devices on the trucks' body, they can have the truck drivers manually send the truck location from a hand held mobile device every 30 minutes.

  The company has a total of 134 old delivery trucks that have been in service for 10 years. Each vehicle was bought at a price of $22,000. Depreciation is done using a straight line basis and it is estimated that the vehicle depreciates at $1000 per year. The estimated salvage value per vehicle is about $3,000.

  Another area of tactical improvement for the courier company is pricing. The management strongly believes that they can start a price war with the most aggressive competitor. Management thinks, with their variable cost of $4 per parcel and fixed cost of $6 per parcel, they can win the market. However, after implementing the tracking solution, fixed cost will jump to $8 per parcel which made management reconsider their options. The competitor has variable costs of $5 per parcel and fixed costs o $7 per parcel.

  What could the business analyst (BA) do to gain consensus between the CFO and other Management?

  A. Calculate the costs incurred by each option

  B. Recommend and present a completely new option

  C. Estimate the potential value delivered by each option

  D. Compare each option against an industry benchmark

  Correct Answer: A

• Question 330:

  

  The table illustrates the statement of cash flows for a courier company for the last fiscal year.

  Due to aggressive market competition, the management of the company performed a strategy review and based on their findings and the current market conditions they came up with strategic and tactical changes in order to keep a competitive market position. In order to strengthen customer retention strategies through a new competitive advantage, the company is considering implementing a live parcel tracking system. The added value will be that the customers may determine the exact location of the parcel whether it is in a warehouse, crossing the ocean through an overseas ship, or travelling in a delivery truck at any time. The system tracks the location of the parcel by tracking the vehicle in which it is contained. However, for a group of old delivery trucks, it was noticed that the engine sound and vibration disturbed the tracking signal and caused interruptions. Therefore, the tracking does not perform accurately on these vehicles. Although the majority of management would like to sell these vehicles and replace them with newer ones, the Chief Financial Officer (CFO) was strongly against that approach. The CFO argued that instead of hanging tracking devices on the trucks' body, they can have the truck drivers manually send the truck location from a hand held mobile device every 30 minutes.

  The company has a total of 134 old delivery trucks that have been in service for 10 years. Each vehicle was bought at a price of $22,000. Depreciation is done using a straight line basis and it is estimated that the vehicle depreciates at $1000 per year. The estimated salvage value per vehicle is about $3,000.

  Another area of tactical improvement for the courier company is pricing. The management strongly believes that they can start a price war with the most aggressive competitor. Management thinks, with their variable cost of $4 per parcel and fixed cost of $6 per parcel, they can win the market. However, after implementing the tracking solution, fixed cost will jump to $8 per parcel which made management reconsider their options. The competitor has variable costs of $5 per parcel and fixed costs o $7 per parcel.

  The CFO's resistance to replacing the older vehicles represents which type of cost?

  A. Sunk

  B. Maintenance

  C. Opportunity

  D. Operating

  Correct Answer: C