An analyst at a bank is trying to identify research questions for an analytical study on top customer issues across branches. During an interview with a branch manager, the analyst asks the manager what their top customer concerns are relating to this branch? After the manager's reply, the analyst asks a follow up question on how their top customer concerns compare against the top customer concerns across all branches? Was the analyst's follow-up question valid?
Correct Answer: B
The analyst's follow-up question is valid because it helps to refine the scope and context of the research questions for the analytical study. By comparing the top customer concerns across branches, the analyst can identify the common and unique issues that affect customer satisfaction and loyalty. This can also help to prioritize the most critical or urgent problems that need to be addressed by the bank12. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 212: Business Analysis for Practitioners: A Practice Guide, PMI, 2015, p. 43.
CBDA Exam Question 67
The finance manager has reported that customers are taking much longer to remit payments this year than last. They would like help in finding a solution to address the situation. One suggestion was to offer a 10% discount to entice customers to pay their invoices in full within the first 30 days. Before offering the discount, the finance manager would like the analytics team to do some research to determine if there is value in addressing the accounts receivable problem. Which of the following is a valid question to ask in this situation?
Correct Answer: A
According to the Guide to Business Data Analytics, one of the steps in conducting business data analytics is to identify the research questions that will guide the analysis and help answer the business problem or opportunity. The research questions should be relevant, specific, measurable, achievable, and testable. In this situation, the business problem is the delay in customer payments and the potential solution is to offer a discount. A valid question to ask in this situation is whether discounts have been offered before, and if so, what was the effect on customer behavior and profitability. This question is relevant because it can help assess the feasibility and effectiveness of the proposed solution. It is also specific, measurable, achievable, and testable, as it can be answered by collecting and analyzing historical data on customer payments and discounts. References: Guide to Business Data Analytics, page 47-48; CBDA Exam Blueprint, page 7; [Introduction to Business Data Analytics: A Practitioner View], page 15.
CBDA Exam Question 68
An analytics team has completed some initial data analysis but is considering revising their research question based on their analysis findings. The team was concerned the original question was too broad. What outcome would lead the team to have this concern?
Correct Answer: C
Explanation A research question is a clear and focused question that guides the data analytics process and defines the expected outcome or value of the analysis1. A research question that is too broad may lead to the concern of being difficult to identify the key performance indicators (KPIs) to measure, as KPIs are specific, quantifiable, and relevant metrics that indicate the progress and success of the analysis in relation to the research question23. A broad research question may also result in too much or too little data, unclear or conflicting objectives, or irrelevant or ambiguous results4. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 202: Guide to Business Data Analytics, IIBA, 2020, p. 233: Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, David Parmenter, 2015, p. 34: How to Write a Good Research Question, ThoughtCo, 2021, 1.
CBDA Exam Question 69
A future state data model is created to depict how information will be structured in a proposed solution but the analyst is also interested in modeling how and when data is transformed throughout various processes across the organization.In which model would the analyst find this information?
Correct Answer: B
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 howand 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. References: * 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.
CBDA Exam Question 70
An analyst supporting the Marketing department for a specialty retailer has been asked to look through past sales data to help guide product decisions. The business sponsor for this initiative would first like to know 'What is the most profitable product line?'. What type of analytics is the analyst going to perform to address this question?
Correct Answer: C
According to the Guide to Business Data Analytics, descriptive analytics is a type of analytics that summarizes and presents data in a meaningful way. Descriptive analytics uses techniques such as statistics, charts, tables, and dashboards to provide an overview of what has happened or is happening in the data. Descriptive analytics can help answer questions such as who, what, when, where, and how. In this situation, the analyst has been asked to look through past sales data to help guide product decisions. The business sponsor for this initiative would first like to know 'What is the most profitable product line?'. This is a descriptive analytics question, as it involves summarizing and presenting the past sales data by product line and calculating the profit margin for each product line. References: Guide to Business Data Analytics, page 49; CBDA Exam Blueprint, page 7; [Introduction to Business Data Analytics: A Practitioner View], page 14.
