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IIBA CBDA Practice Test - Questions Answers
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Question 1
A Data Dictionary is being developed for an employee database. When reviewing the data dictionary, the analyst recommends adding another primitive data element. Which element would be suggested?
Explanation:
A street address is a primitive data element, because it is a basic unit of data that cannot be further decomposed into smaller components. A primitive data element has a distinct name, definition, format, and value domain. A street address can be used to identify the location of an employee or a customer, and it can be stored as a string or a combination of numbers and characters. Options B, C, and D are not primitive data elements, because they can be further broken down into smaller components. For example, a first name can be divided into a prefix, a given name, and a suffix. A customer name can be composed of a first name and a last name. A work phone number can be split into a country code, an area code, and a local number.
Reference:
* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 2: Source Data
* Business analysis data dictionary -- The Functional BA
* CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 15
Question 2
Collaborative games are used by a business analyst to identify the research questions to be explored within an analytics system.
Participants are asked to write down a research question on a sticky note, put the notes on the wall, and move them towards related research questions. What type of Collaborative game is being played?
Explanation:
An affinity map is a collaborative game that helps participants to group similar ideas or features together. It is useful for identifying research questions that are related to each other and finding common themes or patterns. In this game, participants write down their research questions on sticky notes and place them on the wall. Then, they move the notes around to form clusters of related questions. The clusters can be labeled with a descriptive name or a question that summarizes the theme. An affinity map can help participants to prioritize the most important or relevant research questions and generate insights from the data. https://businessanalystmentor.com/collaborative-games-business-analysis/
Question 3
An analytics system is being developed by relying entirely on research questions that are framed using the results from benchmarking. Which research question is being asked?
Explanation:
Benchmarking is a method of comparing the performance of a business with others in the same industry or with industry standards12. It helps to identify areas of improvement and best practices for superior performance34. A research question that is framed using the results from benchmarking would focus on how the company compares to its competitors or to the industry average on a specific metric or process. For example, how efficient is the company compared to its competitors? This question would require the company to measure its efficiency using a relevant indicator, such as cost per unit, time per task, or output per employee, and compare it to the same indicator for its competitors. This would help the company to identify its strengths and weaknesses, and to find ways to improve its efficiency and gain a competitive advantage
Question 4
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:
Explanation:
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 5
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?
Explanation:
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.
Reference:
* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 5: Use Results to Influence Business Decision Making
* Understanding the Guide to Business Data Analytics, page 9
* CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 6
Question 6
A real estate broker is tracking monthly sales between two of its teams. The results have been visualized. What insights can be drawn from the chart?
Explanation:
The chart visualizes monthly sales data for two teams over a year, divided into quarters. By analyzing the data, it is evident that November (part of Q4) had the lowest monthly sales in the year, making option C correct. There isn't enough information to verify the performance of individual teams in each quarter as per Business Data Analytics (IIBA- CBDA) objectives and resources.
Reference:
* [Business Analysis Certification in Data Analytics, CBDA | IIBA], CBDA Competencies, Domain 4: Interpret and Report Results
* [Understanding the Guide to Business Data Analytics], page 9
* [CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA], page 8, CBDA Exam Sample Questions and Self-Assessment, Question 7
Question 7
The analytics team has been asked to assess sales data from their company's website with the hopes of providing insights to help increase online sales. It's the first time the team is looking at this specific data and they are concerned about the quality of data that has been captured. They decide to use the following approach as the next step:
Explanation:
Exploratory analysis is the approach that the analytics team should use as the next step, because it is a technique that allows them to examine the quality, structure, and characteristics of the data, without making any assumptions or hypotheses. Exploratory analysis can help the team identify any issues or anomalies in the data, such as missing values, outliers, or errors, and decide how to handle them. Exploratory analysis can also help the team discover any patterns, trends, or relationships in the data, and generate new research questions or hypotheses for further analysis.
Reference:
* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 3: Analyze Data
* Understanding the Guide to Business Data Analytics, page 16
* CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 8
Question 8
Operation managers are concerned about the increasing attrition rates in the call center. A series of interviews is being conducted with call center agents to collect information to better understand the problem. Interviewees will ask open and closed ended questions that are both quantitative and qualitative. Which of the following is considered a qualitative open-ended question?
Explanation:
A qualitative open-ended question is a question that allows the respondent to express their thoughts, feelings, or opinions in their own words, without being constrained by predefined options or categories. A qualitative open-ended question can help the interviewer explore the underlying reasons, motivations, or perceptions of the respondent. Option A is a qualitative open-ended question, because it asks the respondent to explain how call volume affects their job satisfaction and well-being, which may vary from person to person and require elaboration. Options B, C, and D are not qualitative open-ended questions, because they ask the respondent to choose between two alternatives (B and D) or provide a numerical value , which are quantitative and closed-ended responses.
Reference:
* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 2: Source Data
* Understanding the Guide to Business Data Analytics, page 14
* CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 9
Question 9
The research question prompting the use of analytics is well-defined. The team obtains the results and determines that the source data did not provide reliable results. As a result of this finding, the team modifies the original question to one that can be answered by the data. What is a risk that could impact the value of this analysis?
Explanation:
The risk that could impact the value of this analysis is that the objective of the original research may not be met, because the team modified the research question to fit the data, rather than finding the data that fits the research question. This could lead to a loss of alignment between the research question and the business problem, stakeholder needs, or analytical methods. The team may end up answering a different or less relevant question than the one they intended to answer, and thus provide less valuable insights or recommendations.
Reference:
* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 1: Identify the Research Questions
* Understanding the Guide to Business Data Analytics, page 10-11
* CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 10
Question 10
An online retailer of men's athletic apparel is seeking to become the market leader in the industry. To deliver on this strategy, the analytics team continuously collects data on the prices of competitor products and uses this information to adjust the retailer's prices. What type of analytics is the retailer using to maintain their pricing structure?
Explanation:
Prescriptive analytics is the type of analytics that the retailer is using to maintain their pricing structure, because it is a technique that uses data and models to recommend the best course of action for a given situation. Prescriptive analytics can help the retailer optimize their prices based on the data collected from the competitors, the market conditions, and the customer preferences, and thus achieve their strategic goal of becoming the market leader.
Reference:
* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 3: Analyze Data
* Understanding the Guide to Business Data Analytics, page 17
* CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 11
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