IIBA CBDA Practice Test - Questions Answers, Page 13

The analytics team found a correlation between the age of the customer and the price of the neckties purchased, meaning that as one variable changes, the other tends to change in the same direction. However, this correlation does not imply causation, meaning that one variable does not necessarily cause the other to change. There could be other factors, such as income, preference, or quality, that affect both variables and create a spurious relationship. Therefore, the team realized that they need to investigate further to determine if there is a causal link between the variables, or if the correlation is coincidental12

Reference: 1: Correlation vs. Causation | Difference, Designs & Examples - Scribbr 2: Correlation vs Causation: Understanding the Differences - Statistics By Jim

A normal probability plot is a graphical technique that can be used to check if a variable follows a Gaussian distribution. It plots the observed values of the variable against the expected values under the normal distribution. If the variable is normally distributed, the points should form a straight line. A scatterplot, a boxplot, and a lowess curve are not suitable for testing normality, as they do not compare the observed values with the theoretical values of the normal distribution.

https://www.graphpad.com/support/faq/testing-data-for-normal-distrbution/

Explanation: According to the Guide to Business Data Analytics, a research question is a clear, concise, and specific question that guides the analytics work1.The research question should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound2. The question 'How can shipping costs be lowered in the northeast to remain competitive?' is not SMART, as it lacks some important details, such as: What is the current shipping cost and the target cost reduction? What are the criteria for measuring competitiveness? What is the time frame for achieving the cost reduction and competitiveness? What are the factors that influence the shipping cost and competitiveness? What are the assumptions and constraints of the analysis? Therefore, the question needs to be further defined before mathematical modeling can begin, as the modeling requires clear and precise inputs and outputs.The other options are not correct, as they imply that the question is either too vague or too narrow, which is not the case.

Explanation: A bullet chart is a type of bar chart that shows progress towards a goal or performance against a reference line1.It consists of a bar representing the featured measure, a reference line denoting a target or threshold, and a background with qualitative ranges (such as poor, fair, good, excellent)2. In this case, the featured measure is the customer satisfaction rate for 2018, the reference line is the target of 70%, and the background ranges are 0-50% (poor), 50-70% (fair), 70-90% (good), and 90-120% (excellent). The chart also shows a thin black bar representing the customer satisfaction rate for 2017, which can be used for comparison. From the chart, we can see that the 2018 customer satisfaction rate is at 90%, which falls in the excellent range and exceeds the target of 70%. We can also see that the 2017 customer satisfaction rate was at 70%, which falls in the good range and meets the target.Therefore, the correct answer is D, as it summarizes both the 2018 and 2017 customer satisfaction rates and their relation to the target and the ranges.

Data architecture is the practice of designing and implementing the structures, models, standards, and processes that enable data integration, storage, and consumption. Data architecture is essential for streaming analytics, as it defines how data is collected, processed, and delivered in real time from multiple sources. Data architecture helps the financial institution integrate the data as it is collected by ensuring data compatibility, consistency, and quality across the streaming pipeline. Data architecture also supports data security, scalability, and performance for streaming analytics.Reference:

Certification in Business Data Analytics (IIBA - CBDA), IIBA, accessed on January 20, 2024.

Business Data Analytics Certification - CBDA Competencies | IIBA, IIBA, accessed on January 20, 2024.

Guide to Business Data Analytics, IIBA, 2020, p. 17-18.

What is Streaming Analytics? | Google Cloud, Google Cloud, accessed on January 20, 2024.

What is Data Integration? | IBM, IBM, accessed on January 20, 2024.

A bullet chart is a type of bar chart that shows progress towards a goal or performance against a reference line1.It consists of a bar representing the featured measure, a reference line denoting a target or threshold, and a background with qualitative ranges (such as poor, fair, good, excellent)2. In this case, the featured measure is the student's score, the reference line is the highest score achieved in that grade, and the background ranges are the qualitative categories that the student's score falls under. A bullet chart is a good option for this use case because it can display all three criteria in one chart, using minimal space and avoiding clutter. A column chart, on the other hand, would require either multiple columns for each student to show the score, the highest score, and the category, or a separate legend to map the colors of the columns to the categories.This would make the chart less effective in communicating the information and more difficult to compare across students.

Explanation: Customer retention rate is a measure of how many customers continue to use a product or service over a given period of time. It is an important indicator of customer loyalty, satisfaction, and value. Customer retention rate can help the bank evaluate how the website is being used by comparing the number of customers who visited the website before and after the launch of the new features. A high customer retention rate would suggest that the new features are attractive, useful, and engaging for the customers, while a low customer retention rate would indicate that the new features are not meeting the customers' needs or expectations. Customer retention rate can also help the bank identify the segments of customers who are more or less likely to use the website, and tailor their marketing and communication strategies accordingly.Reference: Certification in Business Data Analytics (IIBA - CBDA), IIBA, accessed on January 20, 2024. Business Data Analytics Certification - CBDA Competencies | IIBA, IIBA, accessed on January 20, 2024. Guide to Business Data Analytics, IIBA, 2020, p. 23-24. What is Customer Retention Rate? | HubSpot, HubSpot, accessed on January 20, 2024.

Explanation: A zero-to-many relationship between two entities means that one instance of the first entity can be associated with zero or more instances of the second entity, and one instance of the second entity can be associated with only one instance of the first entity1. In this case, a customer entry will be present in the Customer entity regardless of whether an order was made, which means that a customer can have zero or more orders, but an order can only belong to one customer.Therefore, the relationship between Customer and Order is zero-to-many.

A data flow diagram (DFD) is a graphical representation of how data flows and transforms through a system or process. A DFD shows the sources and destinations of data, the data inputs and outputs, the data transformations and logic, and the data stores and flows. A DFD can help the analyst model how and when data is transformed throughout various processes across the organization, as well as identify potential data quality issues, bottlenecks, and redundancies. A DFD can also complement a future state data model by showing the relationships and dependencies among the data entities and attributes.Reference:

Certification in Business Data Analytics (IIBA - CBDA), IIBA, accessed on January 20, 2024.

Business Data Analytics Certification - CBDA Competencies | IIBA, IIBA, accessed on January 20, 2024.

Guide to Business Data Analytics, IIBA, 2020, p. 19-20.

Data Flow Diagram - Everything You Need to Know About DFD, Visual Paradigm, accessed on January 20, 2024.