IIBA CBDA IIBA - CBDA Exam Questions Instant Access

Question 1

DIAGRAM

Year-over-Year Sales

300

200

AThe medians and the inter-quartile range is the same in each group

BThe medians and the inter-quartile ranges are different in each group

CThe medians are the same but the inter-quartile ranges are not

DThe inter-quartile ranges are the same but the medians are not
Explanation:
According to the Guide to Business Data Analytics, a boxplot is used to provide a visual summary of one or more groups of data values through their quartiles. In this case, the boxplot shows two different years, 2017 and 2018, with distinct medians and interquartile ranges. The median is represented by the line inside the box, while the interquartile range is represented by the height of the box itself. Outliers are marked with circles above and below the box. From the boxplot, we can see that the median sales for 2018 are higher than the median sales for 2017, and the interquartile range for 2018 is narrower than the interquartile range for 2017. This means that the sales for 2018 are more concentrated around the median and have less variability than the sales for 2017. Therefore, the correct answer is B.

Answer : B

![Year-over-Year Sales]

Question 2

To support their recommendation, the analytics team has identified investment and resources required to implement. The team has also identified key activities and events that are required to transition the organization through various stages to the future state. This information is clearly articulated in the:

ARisk assessment

BGap analysis

CChange strategy

DGantt chart
Explanation:
According to the Guide to Business Data Analytics, a change strategy is a document that outlines the approach and plan for managing the change resulting from the data analysis and the proposed solution. A change strategy should include the following elements: the vision and objectives of the change, the scope and impact of the change, the stakeholders and their roles and responsibilities, the communication and engagement plan, the training and development plan, the transition and implementation plan, the risk and issue management plan, and the evaluation and measurement plan. A change strategy can help ensure that the change is aligned with the business goals, that the stakeholders are informed and involved, that the risks and issues are identified and mitigated, and that the benefits and outcomes are realized and sustained.

Answer : C

Question 3

An online retailer has been successful utilizing analytics to guide decisions on product placement and marketing spend.

Management has requested a task force be assembled to make recommendations on how to further develop their analytics capabilities. To begin this work, the task force builds a model to develop a shared understanding about customer segments, customer relationships, key partnerships, and the company's value proposition. The team has leveraged the following model to facilitate this discussion?

AValue chain analysis

BBalanced scorecard

CBusiness model canvas

DCATWOE

Answer : C

The business model canvas is the model that the task force has leveraged to facilitate the discussion, because it is a technique that describes the logic of how an organization creates, delivers, and captures value. The business model canvas consists of nine building blocks that cover the key aspects of a business: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The business model canvas can help the task force develop a shared understanding of the current state of the online retailer, and identify the opportunities and challenges for developing their analytics capabilities. Reference:

* Business Analysis Certification in Data Analytics, CBDA | IIBA, CBDA Competencies, Domain 6: Guide Organization-level Strategy for Business Analytics

* Understanding the Guide to Business Data Analytics, page 9

* 10.8 Business Model Canvas | IIBA

Question 4

An insurance company would like to develop a range of insurance products for different types of customers. The analytics team is asked to conduct some research and share their insights with senior management. Which technique would be useful to divide the customer base into groups?

ALinear regression

BSurvey sampling

CFactor analysis

DK-means clustering

Answer : D

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.

Question 5

A marketing director has asked the question 'How many product purchases are expected this coming year given the current marketing campaign?". What type of analytics would be performed to answer this question?

ADescriptive

BPredictive

CDiagnostic

DPrescriptive

Answer : B

Predictive analytics is a type of analytics that uses historical and current data, as well as statistical and machine learning techniques, to forecast future events or outcomes, such as product purchases, customer behavior, or market trends12. To answer the question 'How many product purchases are expected this coming year given the current marketing campaign?', predictive analytics would be performed to estimate the demand and sales based on the existing data and the marketing campaign variables. Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 182: Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die, Eric Siegel, 2016, p. 3.

Question 6

An analyst is doing a clinical study on the value of analyte among a large population of healthy people. The analyst is going to use a Gaussian Distribution to share the results. Which of the following represents a Gaussian Distribution? (IMAGE TAKEN)

DC
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.

Answer : C

Question 7

To ensure their recommendation can be acted upon, the business analysis professional on the analytics team helps the team complete financial analysis to support their recommendation. As part of the financial analysis that's completed, the cost-benefit analysis shows positive net benefits starting in the 2nd year. The team feels this is sufficient to proceed with their strong endorsement of the recommendation. The business analysis professional:

AAgrees since all the necessary analysis work is complete

BDisagrees since the risk of generating that net benefit is too high

CAgrees recognizing that positive benefits are occurring quickly

DDisagrees stating that the cumulative net benefits need to be reviewed

Answer : D

According to the Guide to Business Data Analytics, a cost-benefit analysis is a technique that compares the costs and benefits of a project or decision over a period of time. The net benefit is the difference between the total benefits and the total costs. A positive net benefit indicates that the benefits outweigh the costs. However, a positive net benefit in one year does not necessarily mean that the project or decision is financially viable. The business analysis professional should also consider the cumulative net benefit, which is the sum of the net benefits over the entire time horizon. The cumulative net benefit reflects the overall value of the project or decision, taking into account the time value of money and the opportunity cost of capital. A project or decision is only financially feasible if the cumulative net benefit is positive at the end of the time horizon. Therefore, the business analysis professional should disagree with the team and suggest that they review the cumulative net benefit before endorsing the recommendation.

IIBA Certification in Business Data Analytics CBDA IIBA - CBDA Exam Questions