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Real IIBA CBDA Exam Questions [Updated 2024]
NEW QUESTION # 28
The results of the data analytics work led to some clear and strongly supported outcomes and the analytics team is very confident in their recommendations; particularly given that the payback on the required changes are a short 3 months. However, there is concern because the organization operates in a highly regulated environment and some new regulatory changes are being considered with announcements and implementation in the next 6 months. Under these conditions the team decides to:
- A. Reassess their results to ensure their validity and then decide what to do
- B. Postpone recommendations for 6 months until the announcements are made
- C. Recommend no action be taken at this time and revisit in 6 months
- D. Identify and carefully document assumptions for their recommendation
Answer: D
Explanation:
Explanation
The best option for the team under these conditions is to identify and carefully document the assumptions for their recommendation, such as the expected impact of the regulatory changes, the risks and benefits of implementing the changes before or after the announcements, and the sensitivity of the results to different scenarios. This way, the team can communicate their findings and recommendations clearly and transparently, while also acknowledging the uncertainty and limitations of their analysis. This can help the decision makers to evaluate the trade-offs and make informed choices12. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 242: Data-Driven Decision Making: A Primer for Beginners, Anand Rao, 2018, 1.
NEW QUESTION # 29
As the team discusses how to utilize the results of their data analysis to put forth a business recommendation, an analyst on the team voices concern over the current organizational culture presenting a roadblock to their ability to influence business decision making. Which of the following would be a justifiable concern at this stage of the team's efforts?
- A. Finding data that creates value creating difficulties, as not all data helps a business make better decisions
- B. Changing the mindsets of business stakeholders to trust insights gleaned from data over experience and intuition
- C. Applying a myopic view of data and establishing data silos which create roadblocks to exploring available data sources
- D. Difficulty bringing business stakeholders to a shared understanding about value when sharing data assets across business domains
Answer: B
Explanation:
A justifiable concern at this stage of the team's efforts is changing the mindsets of business stakeholders to trust insights gleaned from data over experience and intuition. This is because some stakeholders may have a strong attachment to their own opinions or beliefs, and may resist or ignore data that contradicts them. This can create a barrier to data-driven decision making, which requires a culture of curiosity, openness, and evidence-based reasoning. The team needs to communicate the value and validity of their data analysis, and persuade the stakeholders to adopt a data-driven mindset12 References: 1: Use Data to Accelerate Your Business Strategy 2: Data-Driven Decision Making: A Step-by-Step Guide
NEW QUESTION # 30
Insights based on the data collected indicate that a multi-national company could increase its sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period.
The team recommends this as an appropriate goal for its organization. This is considered a good goal because:
- A. It meets all the criteria for a well-defined objective
- B. The organization can derive additional revenue from the product
- C. Management will be pleased that the mature product can still contribute to revenue
- D. It indicates that the company does not have to incur costs associated with retiring this product
Answer: A
Explanation:
Explanation
A well-defined objective is one that is specific, measurable, achievable, relevant, and time-bound (SMART)1.
The goal of increasing sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period meets all these criteria, as it clearly states what the desired outcome is, how it will be measured, whether it is realistic and attainable, how it aligns with the organization's strategy, and when it will be achieved2. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 192: SMART Goals: How to Make Your Goals Achievable, MindTools, 2021, 1.
NEW QUESTION # 31
An analytics team is discussing ways to improve company performance. Before identifying a set of research questions to analyze, they identify the need to understand the current company strategy and performance. The business analyst suggests using the Balanced Scorecard technique to guide this discussion. In which dimension of the matrix would the team be discussing metrics for changing and improving?
- A. Customer
- B. Financial
- C. Learning and Growth
- D. Internal Business Process
Answer: C
Explanation:
According to the Introduction to Business Data Analytics: An Organizational View, the Balanced Scorecard technique is a strategic management tool that helps organizations align their vision, mission, and goals with their performance measures. The Balanced Scorecard consists of four dimensions: financial, customer, internal business process, and learning and growth. Each dimension has a set of objectives, measures, targets, and initiatives that reflect the organization's strategy and value proposition. The learning and growth dimension focuses on the metrics for changing and improving the organization'scapabilities, such as employee skills, knowledge, innovation, and culture. The learning and growth dimension supports the other three dimensions by providing the necessary resources and competencies to achieve the desired outcomes.
References: Introduction to Business Data Analytics: An Organizational View, page 9-10; CBDA Exam Blueprint, page 7; [Balanced Scorecard Basics - Balanced Scorecard Institute]
NEW QUESTION # 32
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. Question why management would only want them to test two price points
- B. Use their original recommendation given that the volume of sales is much higher
- C. Redo the survey looking for a larger sample size
- D. Change their recommendation realizing they have been victims of linear bias
Answer: D
Explanation:
Linear bias is a type of cognitive bias that assumes a linear relationship between two variables, when in fact the relationship may be more complex or nonlinear. In this case, the analytics team assumed that the higher the discount, the higher the sales and profit, without considering other factors that may affect customer behavior, such as price elasticity, perceived quality, or competition. By changing their recommendation, the team can avoid making a suboptimal decision that may result in lower profit or customer satisfaction.
References:10 Cognitive Biases in Business Analytics and How to Avoid Them, page 5; [Business Data Analytics: A Decision-Making Paradigm], page 9.
NEW QUESTION # 33
A private school has decided to include bullet charts in students' end of year performance report. It will depict the student's score against the highest score achieved in that grade, and the qualitative category that the student's score falls under.Should a column chart be used instead?
- A. No, a bullet chart is a good option as it will depict all three criteria in one chart
- B. Yes, a column chart would be a better option to depict all three criteria in one chart
- C. Both charts are insufficient in meeting the requirements of a student score card
- D. Both charts can be used as a column chart is a comparable alternative to a bullet chart
Answer: A
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 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.
References:1: Understanding and Using Bullet Graphs | Tableau, 2: Bullet Charts - What Is It And How To Use It - JSCharting
NEW QUESTION # 34
A software company launched a new product in late 2016. The product manager is reviewing a Box and Whisker plot used to compare year-over-year sales, from 2017 to 2018. What is the conclusion he can make from this chart?
- A. 2017 minimum and maximum sales are higher than 2018, and the 2017 median result is higher than the 2018 median result
- B. 2018 minimum and maximum sales are higher than 2017, and the 2018 1st quartile is higher than 2017 median result
- C. 2018 minimum and maximum sales are higher than 2017, and the 2018 quartile results are higher than 2017 quartile results
- D. 2017 minimum and maximum sales are higher than 2018, but the 2017 median result is lower than 2018 1st quartile result
Answer: B
NEW QUESTION # 35
While sourcing data, an analyst runs into a situation where different business units are usingdifferent names to refer to the same data element. This lack of standardization is resulting in confusion and additional time required to properly prepare data for analysis. Which practice, if implemented would address this situation and mature the organization's business analytics practice?
- A. Meta data management
- B. Database operations management
- C. Data warehousing
- D. Data quality management
Answer: A
Explanation:
Meta data management is the practice that, if implemented, would address the situation and mature the organization's business analytics practice, because it is a technique that involves defining, documenting, and maintaining the information about the data elements, such as their names, definitions, formats, sources, and relationships. Meta data management can help the analyst resolve the inconsistencies and ambiguities in the data element names, and ensure that the data is standardized, consistent, and understandable across different business units. Meta data management can also help the analyst improve the data quality, accessibility, and usability for the analysis. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 2: Source Data
*Guide to Business Data Analytics - Iiba - Google Books, page 14
*Business Data Analytics (IIBA®-CBDA Exam preparation) | Udemy, Section 2: Source Data, Lecture 8:
Meta Data Management
NEW QUESTION # 36
A manufacturing company, specializing in turf maintenance equipment, has recently seen a decline in their lawn mower sales. As a result, the analytics team is asked to review the latest customer satisfaction survey results. An analyst on this team creates a report for senior management with attractive visuals, supported by the KPI results. Upon reviewing the report, the analyst's manager mentions that the report is missing the narrative. What does this mean?
- A. A narrative that supports insights with additional context and draws correlations
- B. Notes on assumptions and unavailable data for analysis
- C. The data tables that support the visuals and help answer questions
- D. Commentary around why each graphic was selected to provide additional context
Answer: A
Explanation:
Explanation
A narrative is a written or spoken explanation of the data analysis results that tells a story with the data, provides additional context and background information, highlights the key insights and findings, and draws correlations and implications for the decision makers12. The report is missing the narrative, meaning that it does not communicate the meaning and value of the data analysis effectively, and it leaves the interpretation and action to the senior management without any guidance or recommendation34. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 672: Storytelling with Data, Cole Nussbaumer Knaflic, 2015, p. 93:
Data Storytelling: The Essential Data Science Skill Everyone Needs, Brent Dykes, 2016, 14: The Power of Data Storytelling, Harvard Business Review, 2018, 2.
NEW QUESTION # 37
To gain traction on online sales, a retailer initiated a marketing campaign using banner ads. The company has requested their analytics team to evaluate the performance of the campaign. During the presentation, the analyst confirmed that the campaign did bring in a large number of net new customers to the website and met the target sales conversion rate. They also noted that there was a high number of repeat visitors not completing a sale. What decision would help the retailer improve sales conversion rates for repeat visitors?
- A. Increase investment in banner ads
- B. Incentivize customers to subscribe to promotional notifications
- C. Ensure the sales checkout process is streamlined
- D. Add additional new products to attract customers
Answer: C
Explanation:
Explanation
According to the Business Data Analytics: A Decision-Making Paradigm1, one of the key steps in the analytics process is to communicate insights and recommendations to stakeholders. The analyst should present the findings in a clear and concise manner, and provide actionable suggestions to improve the business outcomes. In this case, the analyst has identified that repeat visitors are not completing a sale, which indicates a possible issue with the sales checkout process. Therefore, the analyst should recommend the retailer to streamline the sales checkout process, which could reduce friction, increase customer satisfaction, and boost sales conversion rates for repeat visitors. References: Business Data Analytics: A Decision-Making Paradigm
NEW QUESTION # 38
A large bank has recently revamped their website, adding additional features such as financial investment opportunities, spending activity, and supporting reports. Which question will add value when evaluating how the website is being used?
- A. How many articles were published since the website launch?
- B. What is the customer satisfaction rating across the branches?
- C. What are the top keywords used in searches made within the website?
- D. What is the customer retention rate since the website launch?
Answer: D
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. 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. 23-24.
* What is Customer Retention Rate?| HubSpot, HubSpot, accessed on January 20, 2024.
NEW QUESTION # 39
What is the relationship between a Customer entity and an Order entity, where a customer entry will be present in the Customer entity regardless of whether an order was made?
- A. one-to-one
- B. many-to-many
- C. zero-to-one
- D. zero-to-many
Answer: D
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.
References:1: Entity Relationship Diagram (ERD) Tutorial - Part 1
NEW QUESTION # 40
The results of the data analytics work led to some clear and strongly supported outcomes and the analytics team is very confident in their recommendations; particularly given that the payback on the required changes are a short 3 months. However, there is concern because the organization operates in a highly regulated environment and some new regulatory changes are being considered with announcements and implementation in the next 6 months. Under these conditions the team decides to:
- A. Reassess their results to ensure their validity and then decide what to do
- B. Postpone recommendations for 6 months until the announcements are made
- C. Recommend no action be taken at this time and revisit in 6 months
- D. Identify and carefully document assumptions for their recommendation
Answer: D
Explanation:
The best option for the team under these conditions is to identify and carefully document theassumptions for their recommendation, such as the expected impact of the regulatory changes, the risks and benefits of implementing the changes before or after the announcements, and the sensitivity of the results to different scenarios. This way, the team can communicate their findings and recommendations clearly and transparently, while also acknowledging the uncertainty and limitations of their analysis. This can help the decision makers to evaluate the trade-offs and make informed choices12. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 242: Data-Driven Decision Making: A Primer for Beginners, Anand Rao, 2018, 1.
NEW QUESTION # 41
A consumer products company is interested in finding ways to innovate utilizing business analytics. The team is reviewing a database of customer complaints. Interested in knowing how the organization currently interacts with its customers, the analyst proposes the use of which technique?
- A. Current state assessment
- B. Journey map
- C. Document analysis
- D. Interface analysis
Answer: B
Explanation:
A journey map is a visual representation of the interactions and experiences of a customer or stakeholder with an organization, product, or service over time. A journey map can help identify pain points, gaps, opportunities, and emotions along the customer journey. A journey map can also help understand the current state of the customer experience and how it can be improved or innovated using business analytics.
References:Guide to Business Data Analytics, page 55; Introduction to Business Data Analytics: An Organizational View, page 18.
NEW QUESTION # 42
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?
- A. Yes, only for the purpose of ensuring that the manager is aware of the company-wide reports
- B. Yes, it builds on the previous question and allows the analyst to identify branch-specific concerns
- C. No, the question is not valid in this particular scenario
- D. No, there is no value comparing the results of a single branch with results across all branches
Answer: B
Explanation:
Explanation
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.
NEW QUESTION # 43
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