IIBA IIBA Certifications CBDA Questions & Answers

• Question 121:

  A manufacturing company, specializing in turf maintenance equipment, has recently seen a decline in their lawn mower sales. As a result, the analytics team is asked to review the latest customer satisfaction survey results. An analyst on this team creates a report for senior management with attractive visuals, supported by the KPI results. Upon reviewing the report, the analyst's manager mentions that the report is missing the narrative. What does this mean?

  A. The data tables that support the visuals and help answer questions

  B. A narrative that supports insights with additional context and draws correlations

  C. Notes on assumptions and unavailable data for analysis

  D. Commentary around why each graphic was selected to provide additional context

  Correct Answer: B

  A narrative is a written or spoken explanation of the data analysis results that tells a story with the data, provides additional context and background information, highlights the key insights and findings, and draws correlations and implications for the decision makers12. The report is missing the narrative, meaning that it does not communicate the meaning and value of the data analysis effectively, and it leaves the interpretation and action to the senior management without any guidance or recommendation

• Question 122:

  Based on the financial analysis that's been completed by the analytics team, the business analysis professional reminds the team that the most financially feasible option is the one with the:

  A. Highest ROI, highest present value, lowest NPV and highest payback period

  B. Highest ROI, highest present value, highest NPV, and lowest payback period

  C. Highest ROI, lowest present value, lowest NPV and highest payback period

  D. Highest ROI, lowest present value, highest NPV and lowest payback period

  Correct Answer: B

  The most financially feasible option is the one that maximizes the return on investment (ROI), the present value (PV), and the net present value (NPV), and minimizes the payback period. ROI measures the annual percentage return of an investment, PV measures the current value of future cash flows, NPV measures the difference between the PV and the initial cost of an investment, and payback period measures the time it takes to recover the initial cost of an investment. A higher ROI, PV, and NPV indicate a more profitable and valuable investment, while a lower payback period indicates a faster recovery and lower risk of an investment

• Question 123:

  Interested in experimenting with analytics, a manufacturing company hires an analyst to see how the capability can be developed within its organization. The analyst is getting started and recognizes the need to show value from the onset of their work to gain upper management's trust and future funding. What action will accomplish these objectives?

  A. Solve the biggest problem the organization has first to quickly grab the support and attention of senior management

  B. Develop a question that can be answered quickly regardless of alignment to strategy, just to get started

  C. Develop a meaningful question that can be answered with data the company already has in its possession

  D. Perform a market analysis to understand how competitors are using analytics and then launch a similar initiative

  Correct Answer: C

  The best action for the analyst to show value from the onset of their work is to develop a meaningful question that can be answered with data the company already has in its possession. This way, the analyst can demonstrate the potential of analytics to solve relevant business problems, without spending too much time or resources on data collection or market research. The question should also be aligned with the organization's strategy and goals, and provide actionable insights for decision making

• Question 124:

  While creating a dataset for analysis, the analyst reviews the data collected and finds a large percentage of records are missing values. Which activity would the analyst perform in order to use this dataset?

  A. Clustering

  B. Scale validation

  C. Weighting

  D. Factor analysis

  Correct Answer: C

  Weighting is a technique that assigns different values or weights to different records or variables in a dataset, based on their importance or relevance. Weighting can be used to handle missing values by giving them a lower weight or imputing them with a weighted average of other values. Weighting can also help to adjust for sampling bias or non-response bias in the data collection process.

• Question 125:

  A data scientist is performing statistical analysis and is interested in graphically depicting the data set according to the associated quartiles Minimum, First Quartile, Median, Second Quartile, Third Quartile. Which technique would allow for the display of this statistical five number summary?

  A. Gaussian distribution

  B. Scatter plot

  C. Multivariate histogram

  D. Box plot

  Correct Answer: D

  A box plot is the technique that would allow for the display of the statistical five number summary, because it is a technique that shows the distribution of a data set using a rectangular box and whiskers. A box plot can help the data scientist visualize the minimum, maximum, median, first quartile, and third quartile of the data set, as well as any outliers or skewness. A box plot can also help the data scientist compare the variation and symmetry of different groups or categories of data. Options A, B, and C are not suitable for displaying the statistical five number summary, because they are techniques that show the frequency, relationship, or density of the data, but not the quartiles or outliers.

• Question 126:

  The analytics team has been asked to provide an estimate of the number of customers they expect to have in 12 months. They debated how accurate that figure needs to be and determined that based on the availability of good data, they could predict within + or10%. This is an example of a:

  A. ROM estimate

  B. Delphi estimate

  C. Parametric estimate

  D. Definitive estimate

  Correct Answer: A

  A ROM estimate is a rough order of magnitude estimate that provides a quick and approximate estimate of the cost, time, or effort required for a project or a task. A ROM estimate is based on expert opinion or experience from past projects, and it usually has a large range of variation, such as + or10%. A ROM estimate is useful when there is limited information or data available, or when a high-level estimate is needed for planning or budgeting purposes. However, a ROM estimate also has a high degree of uncertainty and variability, and it should be refined as more details become available

• Question 127:

  The team has completed their analysis on a vast amount of collected data and agree on their recommendations for action.

  However, they are having difficulty in developing the appropriate messages to support their recommendations. The business analysis professional suggests which technique to assist the team?

  A. T-Testing

  B. Simulation

  C. Visioning

  D. Storyboarding

  Correct Answer: D

  Storyboarding is a technique that helps the team to develop the appropriate messages to support their recommendations by creating a visual sequence of the main points, evidence, and actions. Storyboarding helps the team to organize their thoughts, identify gaps, and communicate their findings in a clear and compelling way

• Question 128:

  The analytics team has been asked to determine if the organization should launch their highest revenue generating product into the North American market. To date, this has only been available in Eastern Europe. To answer this, the team formulates several research questions, including:

  A. What product launch related costs can we expect?

  B. How much revenue does the product generate in Eastern Europe?

  C. Why does management need to know this?

  D. Do existing customers really like the product?

  Correct Answer: D

  One of the steps in identifying the research questions for business data analytics is to assess the feasibility and desirability of the proposed solution or change1. This involves understanding the needs, preferences, and satisfaction of the existing and potential customers. Therefore, asking whether the existing customers really like the product is a relevant research question for the analytics team.

• Question 129:

  To gain traction on online sales, a retailer initiated a marketing campaign using banner ads. The company has requested their analytics team to evaluate the performance of the campaign. During the presentation, the analyst confirmed that the campaign did bring in a large number of net new customers to the website and met the target sales conversion rate. They also noted that there was a high number of repeat visitors not completing a sale. What decision would help the retailer improve sales conversion rates for repeat visitors?

  A. Increase investment in banner ads

  B. Incentivize customers to subscribe to promotional notifications

  C. Add additional new products to attract customers

  D. Ensure the sales checkout process is streamlined

  Correct Answer: D

  According to the Business Data Analytics: A Decision-Making Paradigm1, one of the key steps in the analytics process is to communicate insights and recommendations to stakeholders. The analyst should present the findings in a clear and concise manner, and provide actionable suggestions to improve the business outcomes. In this case, the analyst has identified that repeat visitors are not completing a sale, which indicates a possible issue with the sales checkout process. Therefore, the analyst should recommend the retailer to streamline the sales checkout process, which could reduce friction, increase customer satisfaction, and boost sales conversion rates for repeat visitors. References: Business Data Analytics: A Decision-Making Paradigm

• Question 130:

  A consumer goods manufacturer has recently completed an analytics study to understand how to improve its operational excellence. From the top highlights, online sales outperformed other channels in sales growth and there was a direct relationship between positive customer reviews and increased internet sales. Which strategic business decision may be logically derived from these results?

  A. Improve quality of the products

  B. Create an empowered and collaborative work culture

  C. Encourage customers to complete online reviews

  D. Improve operational efficiencies

  Correct Answer: C

  The strategic business decision that may be logically derived from the results is to encourage customers to complete online reviews, because the results show that there is a direct relationship between positive customer reviews and increased internet sales. By increasing the number and quality of online reviews, the consumer goods manufacturer can boost its online sales performance, which outperformed other channels in sales growth. Online reviews can also help the manufacturer gain customer feedback, improve customer loyalty, and enhance its brand reputation.