IIBA CBDA Practice Test - Questions Answers, Page 14

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?

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:

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?

An analyst is performing regression analysis and reviewing the results. They would like to rescale the variables in the model to more clearly reflect the relationship between the regression coefficients. Which technique could be used to rescale the variables?

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?

DIAGRAM TAKEN

As the organization looks to advance its analytics practices, the topic of provisioning access to executive dashboards and visualizations is under discussion. Establishing standards and implementing role based logins to executive dashboards will address:

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?

Freedom Insurance is planning to offer a new type of insurance policy and would like to determine how to optimally price it. The company seeks to identify the characteristics of this policy that would produce the maximum profit in the coming year. What type of analytics would Freedom Insurance be considering to achieve this objective?