IIBA CBAP Practice Test - Questions Answers, Page 37

The technology team at a financial institution has successfully constructed a software application to be deployed as part of a digital banking strategy. A business analyst (BA) has completed a review of the current state description and now needs to evaluate the solution and determine limiting factors for value realization.

What additional input is required to perform the assessment of enterprise limitations?

A company that specialized in manufacturing vending machines for books has been in business for 10 years. As the e-book and online retailing grow, the company perceived that a change is required to respond to the new emerging market forces. However, the change should focus on reusability as much as possible to reduce expenses. After analyzing the current state with the business subject matter experts, the business analyst (BA) proposed investing in a new business line of vending machines that sell pay per use mobile device phone fast charging stations.

Due to the urgency of this change, the BA was asked to finalize requirements elicitation in the shortest possible time.

By proposing this change, what type of view did the BA use to analyze the current manufacturer's state?

A company that specialized in manufacturing vending machines for books has been in business for 10 years. As the e-book and online retailing grow, the company perceived that a change is required to respond to the new emerging market forces. However, the change should focus on reusability as much as possible to reduce expenses. After analyzing the current state with the business subject matter experts, the business analyst (BA) proposed investing in a new business line of vending machines that sell pay per use mobile device phone fast charging stations.

Due to the urgency of this change, the BA was asked to finalize requirements elicitation in the shortest possible time.

The BA was able to complete requirements elicitation activities in a short period of time.

Which type of elicitation approach did the BA use?

An insurance company wants to increase sales by 15% and customer retention by 10% within 1 calendar year. Various strategies to achieve this were considered and a restructure to the existing pricing model is selected to help achieve these goals.

A business analyst (BA) works with stakeholders such as actuaries, product specialists, sales staff, risk managers, and underwriters who agree to applying varying levels of discounts to customers based on:

- Total annual premium the customer has with the company (Financial worth) - Time with the insurance company (Loyalty) Various financial models are considered but the stakeholders agree that an initial applicable discount is determined based on the customer's overall premium:

The percentage of the maximum possible discount available to the customer is adjusted based on time with the company:

If within the first six months, customer retention increased by 5 % and sales increased by 6%, then when will the desired sales and retention goals be achieved assuming the trend continues at the same pace?

An insurance company wants to increase sales by 15% and customer retention by 10% within 1 calendar year. Various strategies to achieve this were considered and a restructure to the existing pricing model is selected to help achieve these goals.

A business analyst (BA) works with stakeholders such as actuaries, product specialists, sales staff, risk managers, and underwriters who agree to applying varying levels of discounts to customers based on:

- Total annual premium the customer has with the company (Financial worth) - Time with the insurance company (Loyalty) Various financial models are considered but the stakeholders agree that an initial applicable discount is determined based on the customer's overall premium:

The percentage of the maximum possible discount available to the customer is adjusted based on time with the company:

Which technique would the BA use to validate the desired outcomes?

An insurance company wants to increase sales by 15% and customer retention by 10% within 1 calendar year. Various strategies to achieve this were considered and a restructure to the existing pricing model is selected to help achieve these goals.

A business analyst (BA) works with stakeholders such as actuaries, product specialists, sales staff, risk managers, and underwriters who agree to applying varying levels of discounts to customers based on:

- Total annual premium the customer has with the company (Financial worth) - Time with the insurance company (Loyalty) Various financial models are considered but the stakeholders agree that an initial applicable discount is determined based on the customer's overall premium:

The percentage of the maximum possible discount available to the customer is adjusted based on time with the company:

What did the BA create to ensure that everyone who needed to be included had been?

An insurance company wants to increase sales by 15% and customer retention by 10% within 1 calendar year. Various strategies to achieve this were considered and a restructure to the existing pricing model is selected to help achieve these goals.

A business analyst (BA) works with stakeholders such as actuaries, product specialists, sales staff, risk managers, and underwriters who agree to applying varying levels of discounts to customers based on:

- Total annual premium the customer has with the company (Financial worth) - Time with the insurance company (Loyalty) Various financial models are considered but the stakeholders agree that an initial applicable discount is determined based on the customer's overall premium:

The percentage of the maximum possible discount available to the customer is adjusted based on time with the company:

As the new pricing structure was being implemented, the chief executive officer (CEO) of the company wanted to change the premiums and associated discounts offered to customers. The BA investigated the cost, anticipated benefits and the length of time the change would likely take to complete before presenting the results back to the CEO.

What type of analysis has the BA just conducted?

A financial institution engaged in mortgage lending has embarked on a business process improvement initiative to eliminate the activities that hinder growth to ultimately improve the success rate of its mortgage business. As a benchmark for identification, the institution is keen on improving any business process that has less than a 75% success rate. The institution has appointed a business analyst (BA) to review the business transactions for the processes of origination, payments, and closures, as well as identify opportunities for improvements and recommend solutions.

The BA has collected the following information over the last three months pertaining to these business processes:

- All the business processes are at their maximum capacity in terms of the current number of transactions.

- Each business process has a certain number of rejects and the reasons for rejection include documentation, verification, collateral, and funding. Funding rejects occur when the bank's customers have failed to make payment of theirmortgage processing fee or mortgage closure payment.

The BA has also recommended the use of documentation checklists as a solution to eliminate the documentation rejects.

If the financial institution always works at full capacity month to month and the new success rate continues to remain the same after implementing the BA's recommendation, what is the average number of successes per month for the mortgage closure process, if the current process capability were increased by 50%?

A financial institution engaged in mortgage lending has embarked on a business process improvement initiative to eliminate the activities that hinder growth to ultimately improve the success rate of its mortgage business. As a benchmark for identification, the institution is keen on improving any business process that has less than a 75% success rate. The institution has appointed a business analyst (BA) to review the business transactions for the processes of origination, payments, and closures, as well as identify opportunities for improvements and recommend solutions.

The BA has collected the following information over the last three months pertaining to these business processes:

- All the business processes are at their maximum capacity in terms of the current number of transactions.

- Each business process has a certain number of rejects and the reasons for rejection include documentation, verification, collateral, and funding. Funding rejects occur when the bank's customers have failed to make payment of theirmortgage processing fee or mortgage closure payment.

The BA has also recommended the use of documentation checklists as a solution to eliminate the documentation rejects.

If an additional recommendation to reduce Verification Rejects by 50% were to be introduced into the mortgage origination process, what is the potential success rate of the mortgage origination process?