IIBA CBDA Practice Test - Questions Answers, Page 3

A bubble chart is a type of chart that displays three dimensions of data: the x-axis, the y-axis, and the size of the bubble. A bubble chart can be used to compare and contrast the characteristics of different solution options by plotting their cost, value, and risk level on the three axes. For example, a solution option with a high cost, high value, and low risk would be represented by a large bubble on the upper left corner of the chart, while a solution option with a low cost, low value, and high risk would be represented by a small bubble on the lower right corner of the chart. A bubble chart can help the analyst and the stakeholders to visualize the trade-offs and benefits of each solution option and to select the most optimal one based on the business objectives and constraints.

Reference:Guide to Business Data Analytics, page 77;Introduction to Business Data Analytics: A Practitioner View, page 16; [Business Data Analytics: A Practical Guide], page 121.

Explanation: Logistic regression is a technique that can be used to model the probability of a binary outcome, such as choosing to watch or not watch a movie, based on one or more predictor variables, such as the characteristics of the movie and the customer's viewing history. Logistic regression can help the business analysis professional to identify the factors that influence the customer's decision and to estimate the likelihood of each customer's preference. Logistic regression can also be used to test hypotheses and to evaluate the performance of the predictive model.

Reference: [Guide to Business Data Analytics], page 55; [Business Data Analytics: A Practical Guide], page 93; [Introduction to Business Data Analytics: A Practitioner View], page 14.

Velocity is one of the four V's of Big Data, along with Volume, Variety, and Veracity. Velocity refers to the speed at which data is generated, collected, and processed. A large number of text messages received by Twitter each year is an example of high-velocity data, as it requires real-time or near-real-time processing and analysis to extract insights and value from it. High-velocity data poses challenges and opportunities for business data analytics, as it requires efficient and scalable data infrastructure, streaming analytics, and timely decision-making.

Explanation: According to the Guide to Business Data Analytics, one of the tasks under the domain of ''Identify the Research Questions'' is to identify sources of business information to consider. This task involves reviewing existing business information, such as documents, reports, databases, and systems, to determine what data is available, relevant, and reliable for answering the research questions. This task also involves identifying any gaps or limitations in the existing information and proposing ways to address them.

Explanation: Reliability is the degree to which a data collection method produces consistent results under the same conditions1. In this case, the reliability of the study data might be compromised by the different interviewers (senior managers vs. external market research company), who might have different biases, expectations, or rapport with the employees. This could affect how the employees respond to the same set of questions, and thus introduce variability in the dat a.Validity, timeliness, and precision are not directly affected by the choice of interviewers, as they depend more on the quality, relevance, and accuracy of the questions and the data analysis.

Reference:1: Guide to Business Data Analytics, IIBA, 2020, p. 26.

K-means clustering is a technique that partitions a set of data points into a predefined number of clusters, based on their similarity or distance. This technique can be useful to divide the customer base into groups that have similar characteristics, preferences, or behaviors, and then design insurance products that cater to each group's needs and expectations. K-means clustering can also help identify outliers or anomalies in the customer data that may require further investigation or attention.

Explanation: According to the Guide to Business Data Analytics, brainstorming is a technique used to generate a large number of ideas or questions in a short period of time1. The purpose of brainstorming is to encourage creativity and divergent thinking, not to evaluate or judge the ideas or questions. Therefore, participants should avoid critiquing suggested questions raised by the group, as this could inhibit the flow of ideas and discourage participation.The other options are not consistent with the principles of brainstorming, as they could limit the quantity or quality of the questions generated.

Explanation: As explained in the previous question, a Gaussian Distribution, also known as a normal distribution, is represented by a symmetrical bell-shaped curve. The mean, median, and mode of the distribution are equal and are at the center of the distribution. This type of distribution is characterized by its mean and standard deviation. The curve is symmetrical around the mean. In the image, the curve labeled A is the only one that matches this description. The other curves are either skewed or irregular.

One of the steps in identifying the research questions for business data analytics is to assess the feasibility and desirability of the proposed solution or change1. This involves understanding the needs, preferences, and satisfaction of the existing and potential customers. Therefore, asking whether the existing customers really like the product is a relevant research question for the analytics team.

Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 22.