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NEW QUESTION # 51
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?
- A. Prescriptive
- B. Descriptive
- C. Diagnostic
- D. Predictive
Answer: B
Explanation:
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.
NEW QUESTION # 52
With the recent departure of two of its employees, an IT helpdesk team is now understaffed and finding it difficult to keep up with the current workload. The number of tickets being received has increased as well as the number of days to resolve the tickets. The IT manager has set up a meeting with the IT director to request funding for two new helpdesk agents. To prepare for the meeting, the manager is interested in showing the tickets processed against ticket volume over the past year.
What type of chart should the manager use to effectively show the change in processing rate over time?
- A. A line chart to show the widening gap between the number of tickets being processed against the number coming over the past year
- B. A pie chart to compare the number of tickets coming in versus tickets being processed each month, over the past year
- C. A waterfall chart to show the number of tickets coming in are a lot higher than those being processed as of year to date
- D. A column chart to compare the number of tickets coming in versus tickets being processed each month, since June
Answer: A
Explanation:
Explanation
A line chart is the type of chart that the manager should use to effectively show the change in processing rate over time, because it is a technique that displays data as a series of points connected by straight lines. A line chart can help the manager visualize the trends and patterns in the ticket volume and processing rate over the past year, and highlight the widening gap between them. A line chart can also show the seasonal variations and fluctuations in the data, and compare the performance of different categories or groups. Options A, B, and D are not suitable for showing the change in processing rate over time, because they are techniques that display data as proportions (A), comparisons (B), or accumulations (D) of different categories or groups at a single point in time or over a fixed period. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 4:
Interpret and Report Results
*Understanding the Guide to Business Data Analytics, page 18
*16 Best Types of Charts and Graphs for Data Visualization [+ Guide]
NEW QUESTION # 53
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. Recommend no action be taken at this time and revisit in 6 months
- C. Identify and carefully document assumptions for their recommendation
- D. Postpone recommendations for 6 months until the announcements are made
Answer: C
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 # 54
An online retailer of men's athletic apparel is seeking to become the market leader in the industry. To deliver on this strategy, the analytics team continuously collects data on the prices of competitorproducts and uses this information to adjust the retailer's prices. What type of analytics is the retailer using to maintain their pricing structure?
- A. Descriptive
- B. Prescriptive
- C. Diagnostic
- D. Predictive
Answer: B
Explanation:
Prescriptive analytics is the type of analytics that the retailer is using to maintain their pricing structure, because it is a technique that uses data and models to recommend the best course of action for a given situation. Prescriptive analytics can help the retailer optimize their prices based on the data collected from the competitors, the market conditions, and the customer preferences, and thus achieve their strategic goal of becoming the market leader. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 3:
Analyze Data
*Understanding the Guide to Business Data Analytics, page 17
*CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA®, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 11
NEW QUESTION # 55
The analytics team has been asked to provide an estimate of the number of customers they expect to have in 12 months. They debated how accurate that figure needs to be and determined that based on the availability of good data, they could predict within + or - 10%. This is an example of a:
- A. Definitive estimate
- B. ROM estimate
- C. Parametric estimate
- D. Delphi estimate
Answer: B
Explanation:
Explanation
A ROM estimate is a rough order of magnitude estimate that provides a quick and approximate estimate of the cost, time, or effort required for a project or a task. A ROM estimate is based on expert opinion or experience from past projects, and it usually has a large range of variation, such as + or - 10%. A ROM estimate is useful when there is limited information or data available, or when a high-level estimate is needed for planning or budgeting purposes. However, a ROM estimate also has a high degree of uncertainty and variability, and it should be refined as more details become available12 References: 1: Project Estimation Techniques Business Analysts Should Know About 2: Estimation techniques for business analysts - The Functional BA
NEW QUESTION # 56
The team has completed their analysis on a vast amount of collected data and agree on their recommendations for action.
However, they are having difficulty in developing the appropriate messages to support their recommendations.
The business analysis professional suggests which technique to assist the team?
- A. Visioning
- B. T-Testing
- C. Simulation
- D. Storyboarding
Answer: D
Explanation:
Storyboarding is a technique that helps the team to develop the appropriate messages to support their recommendations by creating a visual sequence of the main points, evidence, and actions. Storyboarding helps the team to organize their thoughts, identify gaps, and communicate their findings in a clear and compelling way12 References: 1: Developing Key Messages for EffectiveCommunication - MSKTC 2: 11 Ways Highly Successful Leaders Support Their Team - Redbooth
NEW QUESTION # 57
An analyst is using a Data Flow Diagram (DFD) to depict the flow of data across a data security company.
Which of the following is true about DFDs?
- A. Provide similar information as process flows
- B. Can be categorized as Logical or Physical
- C. Can illustrate a sequence of activities
- D. Are used to model data attributes
Answer: B
Explanation:
Explanation
A Data Flow Diagram (DFD) is a technique that shows the flow of data among processes, data stores, and external entities in a system. DFDs can be categorized as logical or physical, depending on the level of detail and abstraction. A logical DFD focuses on the business functions and data flows, without specifying the implementation details. A physical DFD shows the actual components and mechanisms that are involved in the data flow, such as hardware, software, files, and network connections. References:
*10.13 Data Flow Diagrams | IIBA® - International Institute of Business ..., menu, 10.13 Data Flow Diagrams
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 2: Source Data
*Introduction to Business Data Analytics: Organizational View, page 16, Figure 6: Data Flow Diagram
NEW QUESTION # 58
While creating a dataset for analysis, the analyst reviews the data collected and finds a large percentage of records are missing values. Which activity would the analyst perform in order to use this dataset?
- A. Scale validation
- B. Factor analysis
- C. Clustering
- D. Weighting
Answer: D
Explanation:
Explanation
Weighting is a technique that assigns different values or weights to different records or variables in a dataset, based on their importance or relevance. Weighting can be used to handle missing values by giving them a lower weight or imputing them with a weighted average of other values. Weighting can also help to adjust for sampling bias or non-response bias in the data collection process. References:
*Understanding the Guide to Business Data Analytics, page 16
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 3:
Analyze Data
*CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA®, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 4
NEW QUESTION # 59
A financial software company has growth and expansion as one of their top strategic priorities for the year.
The senior executive team would like to assess their sales performance over the last 3 years to help set sales objectives. In discussion with the business analytics manager, for a comprehensive sales report, the sales lead recommends looking into the number of contracts signed over the past 3 years and the dollar value for the signed contracts. Which other question is important to consider when evaluating sales performance?
- A. What is the number of customers retained over the past 3 years?
- B. What is the time to market the software?
- C. What is the average time for conversion?
- D. What is the total cost incurred per year?
Answer: C
Explanation:
The average time for conversion is the average number of days it takes to convert a lead into a customer. This is an important question to consider when evaluating sales performance, because it indicates the efficiency and effectiveness of the sales process. A shorter time for conversion means that the sales team can close more deals in less time, and thus increase the revenue and profitability of the company. A longer time for conversion may indicate that there are bottlenecks, challenges, or inefficiencies in the sales process that need to be addressed. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 5: Use Results to Influence Business Decision Making
*Understanding the Guide to Business Data Analytics, page 9
*Business Data Analytics (IIBA®-CBDA Exam preparation) | Udemy, Section 4: Interpret and Report Results, Lecture 19: Sales Performance Metrics
NEW QUESTION # 60
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. Financial
- B. Customer
- 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 # 61
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. Change their recommendation realizing they have been victims of linear bias
- 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. Question why management would only want them to test two price points
Answer: A
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 # 62
After analyzing sales data, the analytics team finds that the older the customer, the more expensive the neckties purchased. The team felt this was a breakthrough insight but on closer analysis realized that other factors could account for this relationship. This is a clear indication that:
- A. Correlation between variables does not imply causation
- B. Causation between variables does not imply correlation
- C. Correlation between variables implies causation
- D. Causation has no relationship with correlation
Answer: A
Explanation:
The analytics team found a correlation between the age of the customer and the price of the neckties purchased, meaning that as one variable changes, the other tends to change in the same direction. However, this correlation does not imply causation, meaning that one variable does not necessarily cause the other to change. There could be other factors, such as income, preference, or quality, that affect both variables and create a spurious relationship. Therefore, the team realized that they need to investigate further to determine if there is a causal link between the variables, or if the correlation is coincidental12 References: 1: Correlation vs. Causation | Difference, Designs & Examples - Scribbr 2: Correlation vs Causation: Understanding the Differences - Statistics By Jim
NEW QUESTION # 63
Interested in building out the analytics capability based on the positive results obtained by past analytics efforts, the Chief Marketing Officer (CMO) pitches the idea of using analytics to guide future decision making across the enterprise. Before allocating budget to build up an enterprise analytics practice, the decision makers should:
- A. Identify the sponsor and a project manager who can collaborate on the development of the project charter
- B. Request that a small team be assembled to brainstorm a list of capabilities to develop with any approved monies
- C. Determine if the company has the sufficient resources to build up the analytics practice
- D. Oversee the completion of up-front analysis to determine how value can be achieved through an enterprise-wide analytics practice
Answer: D
Explanation:
Explanation
Before investing in an enterprise analytics practice, the decision makers should have a clear understanding of the expected value and benefits of such a practice. This requires conducting an up-front analysis that identifies the business problems or opportunities that can be addressed by analytics, the data sources and technologies that are needed, the analytical models and methods that are appropriate, and the metrics and indicators that will measure the impact and outcomes of the analytics solutions12. This analysis will help to define the scope, objectives, and requirements of the enterprise analytics practice, as well as the resources, roles, and governance structures that are necessary to support it34. An up-front analysis will also help to prioritize the analytics initiatives based on their feasibility, alignment with the business strategy, and potential value creation
NEW QUESTION # 64
A company wants to gauge the thoughts of their employees towards a new company product. On the 25th of March the interviewer makes a list of all employees who were at work on that day and then chooses a subset of those employees to interview. Which term describes the list of all employees present on March 25th?
- A. Sampling frame
- B. Survey sample
- C. Population of interest
- D. Sample weights
Answer: A
Explanation:
Explanation
The sampling frame is the term that describes the list of all employees present on March 25th, because it is a technique that defines the set of elements from which a sample is drawn. The sampling frame should ideally match the population of interest, which is the group of elements that the researcher wants to study or make inferences about. In this case, the population of interest is the employees of the company, and the sampling frame is the subset of employees who were at work on a specific day. The survey sample is the technique that selects a portion of the sampling frame to participate in the survey. The sample weights are the technique that assigns different values or importance to each element in the sample, based on their representation in the population. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 2: Source Data
*Understanding the Guide to Business Data Analytics, page 14
*CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA®, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 14
NEW QUESTION # 65
A new dataset describing employee salaries is received by a company. A colleague wonders whether a variable follows a Gaussian distribution. Which of the following plots would demonstrate this?
- A. Boxplot
- B. Lowess curve
- C. Scatterplot
- D. Normal probability plot
Answer: D
Explanation:
A normal probability plot is a graphical technique that can be used to check if a variable follows a Gaussian distribution. It plots the observed values of the variable against the expected values under the normal distribution. If the variable is normally distributed, the points should form a straight line. A scatterplot, a boxplot, and a lowess curve are not suitable for testing normality, as they do not compare the observed values with the theoretical values of the normal distribution.
https://www.graphpad.com/support/faq/testing-data-for-normal-distrbution/
NEW QUESTION # 66
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:
- A. Agrees recognizing that positive benefits are occurring quickly
- B. Disagrees stating that the cumulative net benefits need to be reviewed
- C. Agrees since all the necessary analysis work is complete
- D. Disagrees since the risk of generating that net benefit is too high
Answer: B
Explanation:
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.
References: Guide to Business Data Analytics, page 55-56; CBDA Exam Blueprint, page 7; [Introduction to Business Data Analytics: A Practitioner View], page 19.
NEW QUESTION # 67
The results for a certification exam were revealed in percentage and percentile. The results for one of the attendees was: 75%, 90th percentile. What is the value in sharing the percentile score?
- A. The percentile score does not add any additional value in assessing the attendee's performance
- B. By ranking, it provided additional insight on how the attendee performed in comparison to other attendees
- C. While the exam score is an objective score, the percentile is a relative score that assesses the attendee's score against the highest possible score
- D. The percentile score provides value by assessing the attendee's score against the average score for that exam
Answer: B
Explanation:
Explanation
The percentile score provides value by ranking the attendee's score among all the scores of the exam takers. A percentile score of 90 means that the attendee scored higher than 90% of the exam takers, and only 10% scored higher than the attendee. This gives a relative measure of how the attendee performed in comparison to other attendees, and how competitive or exceptional the score is. The percentile score does not depend on the average or the highest possible score of the exam, but only on the distribution of the scores of the exam takers.
References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 4:
Interpret and Report Results
*Understanding the Guide to Business Data Analytics, page 9
*What is a Percentile? - Statistics By Jim
NEW QUESTION # 68
A small business has recently launched their website and wants to understand how the website is being used.
In particular, there is interest in identifying which areas of each page receive the most attention. The analyst has decided to communicate this information by displaying the top pages overlaid with colours denoting the volume of clicks.What type of visualization technique is being used here?
- A. Heatmap
- B. Treemap
- C. Scatter chart
- D. Surface chart
Answer: A
Explanation:
According to the Guide to Business Data Analytics, a heatmap is a type of visualization technique that uses colours to represent the values of a variable across a two-dimensional space. A heatmap can help reveal patterns, trends, and outliers in the data, as well as show the relative importance or intensity of different areas.
In this situation, the analyst has decided to communicate the information about the website usage by displaying the top pages overlaid with colours denoting the volume of clicks. This is a heatmap, as it uses colours to show the distribution and magnitude of clicks across the web pages.
References:Guide to Business Data Analytics, page 61;CBDA Exam Blueprint, page 7;Heat Maps | Trendz Analytics
NEW QUESTION # 69
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:
- A. Gap analysis
- B. Risk assessment
- C. Gantt chart
- D. Change strategy
Answer: D
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.
References:Guide to Business Data Analytics, page 84-85;CBDA Exam Blueprint, page 8; [Introduction to Business Data Analytics: A Practitioner View], page 26.
NEW QUESTION # 70
An analyst at a phone manufacturing company is preparing a dashboard for Senior Executives that will cover past year's performance. It will be used in the upcoming senior leadership team meeting to make strategic decisions for the new year. While analyzing the data, the analyst found a lot of interesting revelations related to performance. What should the analyst keep in mind when preparing the Executive dashboard?
- A. Keep some sections high-level, and some sections detailed
- B. Keep it high-level, summarizing key insights and metrics
- C. Keep it detailed if there is a lot of good information to share
- D. Keep it detailed so one dashboard can be shared to all levels of the organization
Answer: B
Explanation:
Explanation
When preparing an executive dashboard, the analyst should keep in mind that the purpose of the dashboard is to provide a quick and clear overview of the past year's performance and to support strategic decision making for the new year. Therefore, the analyst should keep the dashboard high-level, summarizing the key insights and metrics that are relevant and meaningful for the senior executives. The analyst should avoid cluttering the dashboard with too much detail or information that is not essential for the executives. The analyst should also use visual features, such as charts, graphs, and colors, to display the data in an organized and appealing way12 References: 1: Executive Dashboards: 10 Reporting Tips and Examples [2023] * Asana 2: How to Create Executive Dashboard & Reports - Ubiq BI
NEW QUESTION # 71
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