After analyzing sales data, the analytics team finds that the older the customer, the more expensive the neckties purchased. The team felt this was a breakthrough insight but on closer analysis realized that other factors could account for this relationship. This is a clear indication that:

Correlation between variables does not imply causation

Correlation between variables implies causation

Causation has no relationship with correlation

Causation between variables does not imply correlation

Correlation between variables does not imply causation

An analyst is tasked with helping the sales team make better use of its data to support informed business decision making. The analyst creates the following research question 'How can shipping costs be lowered in the northeast to remain competitive?'. This question:

Needs to be further defined before mathematical modeling can begin

Is sufficient to begin analytics work and can be revised after analysis

Is adequately stated and scopes the analytics initiative

Needs to be further defined before mathematical modeling can begin

Needs to be more broadly focused to frame the research

DIAGRAM TAKEN Customer Satisfaction120%100%80%

The 2018 customer satisfaction rate is at 90%. between good and excellent, while the 2017 customer satisfaction rate was at 70%

The 2018 customer satisfaction rate is at 90%. between good and excellent, and exceeded its target of 70%

The 2018 customer satisfaction rate is at 90%. between good and excellent

The 2018 customer satisfaction rate was fair, at 70%, and did not reach its target of 90%

The 2018 customer satisfaction rate is at 90%. between good and excellent, while the 2017 customer satisfaction rate was at 70%

A private school has decided to include bullet charts in students' end of year performance report. It will depict the student's score against the highest score achieved in that grade, and the qualitative category that the student's score falls under. Should a column chart be used instead?

No, a bullet chart is a good option as it will depict all three criteria in one chart

Both charts are insufficient in meeting the requirements of a student score card

Both charts can be used as a column chart is a comparable alternative to a bullet chart

Yes, a column chart would be a better option to depict all three criteria in one chart

No, a bullet chart is a good option as it will depict all three criteria in one chart

A large bank has recently revamped their website, adding additional features such as financial investment opportunities, spending activity, and supporting reports. Which question will add value when evaluating how the website is being used?

What is the customer retention rate since the website launch?

What is the customer satisfaction rating across the branches?

What are the top keywords used in searches made within the website?

What is the customer retention rate since the website launch?

How many articles were published since the website launch?

A marketing department has established an analytics team. The analytics practice is stand-alone and analysts have limited insights into corporate strategy. Which is an expected result for analytics practices operating at the business unit level?

The analytics team may conduct analysis that is of minimal value to the organization

Analytics work will be driven by the organization's business plan

Insights derived from data analysis will be used to guide strategic decisions

The analytics team may conduct analysis that is of minimal value to the organization

The organization will use analytics as a means to obtain a competitive advantage

While formulating the results from completed analysis, the analytics team is applying different techniques to determine an optimal solution to the specified business problem. Which of the following runs the risk of introducing bias in their decision making process?

Expert judgement and experience

Evidenced-based decision making

Expert judgement and experience

Correlations identified through artificial intelligence

Letting the data tell the story

A company wants to run a monthly promotion on batteries that cost 15 cents each and sells for 50 cents. At this price, they typically sell 1000 batteries and generate a profit of 35 cents per battery for a total profit of $350. The analytics team was asked to test two price points - 20% off (i.e. a sale price of 40 cents) and 40% off (i.e., a sale price of 30 cents). The survey data completed by 10000 participants was analyzed and showed that a 20% savings would result in sales of 1200 batteries and the 40% savings would result in 1800 batteries being sold. The team's initial recommendation was to recommend the 40% discount. Now that they are validating their recommendations, they decide to:

Change their recommendation realizing they have been victims of linear bias

Question why management would only want them to test two price points

Change their recommendation realizing they have been victims of linear bias

Redo the survey looking for a larger sample size

Use their original recommendation given that the volume of sales is much higher

A real estate broker is tracking monthly sales between two of its teams. The results have been visualized using a Treemap chart. What is the advantage of using a Treemap chart, over a Sunburst chart to visualize the results?

With its rectangles and straight lines, a Treemap is optimized to include more

With its colour scheme, it is easy to compare the variables within a Treemap

With its rectangles and straight lines, a Treemap is optimized to include more

A Treemap is meant to represent a hierarchical result set as opposed to a Sunburst chart

A Treemap shows all the hierarchical levels of data as opposed to a Sunburst chart

After completing their data analysis, an analyst is drawing out the results, explaining the methods and processes used, and identifying any limitations or weaknesses in the data or methods applied. While performing these steps, which recommended practice would the analyst apply?

Understand the communication needs of stakeholders

Use exploratory analysis to determine the best mathematical method to use

Understand the communication needs of stakeholders

Let the data drive the conclusions and the insights reached

Learn a variety of visualization techniques for effective communications

An analytics team completed their research to determine why customers are abandoning items in their online shopping cart. The team suggests improvements to the website to address the problem. The Director of Sales proclaims that the current website is fine and indicates that the problem materialized when the company increased its shipping rates. The solution proposed by the team seems misaligned. What has gone wrong?

The team did not agree on the business problem

This scenario cannot be addressed with analytics

The team has not agreed on the root cause of the problem

The team did not agree on the business problem

An insufficient amount of planning was performed

A consumer products company gained popularity with increased growth and brand recognition with one of its products. Although they have a loyal customer base and past year's performance results have shown steady growth, the Senior Leadership team wants to keep product leadership as their primary strategic priority. What would be their primary goal?

Focus on providing value to customers by offering innovative and leading edge products

Focus on their other products/product lines so that they gain momentum in popularity as well

Maintain operational efficiencies so that their products can continue to be competitively priced

Ensure that their top product continues to gain market share and maintain high standards

The results for a certification exam were revealed in percentage and percentile. How would you infer the results for an attendee at: 75%, 90th percentile?

While the attendee's exam score was 75/100. the attendee did better than 90% of the attendees

While the attendee's exam score was 90/100. the attendee did better than 75% of the attendees

While the attendee's exam score was 90/100. the attendee did better than 25% of the attendees

While the attendee's exam score was 75/100. the attendee did better than 10% of the attendees

While the attendee's exam score was 75/100. the attendee did better than 90% of the attendees

The analytics team discovers there is an abundance of data available to them from various sources. They are excited about the potential of turning this data into usable information for their organization. They decide to focus the analytics work on:

Using the data to answer a limited number of key questions

Using the data that is easiest to collect in order to turn out reports quickly

Harnessing all the data and presenting various results to senior management

Harnessing all the data as long as the analysis meets key cost criteria

Using the data to answer a limited number of key questions

An analyst is interested in determining whether their company is charging the right prices for their products. Before creating a research question to frame their data analysis, they review a research study provided by the sales department and review several competitor websites. Which statement is true about document analysis?

Data mining is a form of document analysis

Documents that add the most value during document analysis are marketing studies

Data mining is a form of document analysis

Document analysis should be limited to proprietary sources

Document analysis only involves reviewing physical documents

IIBA CBDA Practice Test 4 - Free Online Exam Prep & Questions

A business analyst manager is planning budgets for the new year, and training opportunities for his team of business analysts. The manager sends out a survey to the team to obtain their top interests within the seven areas of training opportunities. The team results were compared against the manager's personal rating. What can be deduced from the following chart with regards to the survey results?

IIBA CBDA image Question 121 40873 09182024210149000000

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