Question No. 1

An analyst at an Insurance company has been asked to share results and provide insights into any impacts to the business since a new government regulation took effect. The analyst is in the process of reviewing the analyzed data to identify any patterns. When interpreting results, what would be one of the questions the analyst will be asking?

AHow will the recipients receive the results?

BAre the right data dimensions being used?

CWhat do the results mean in the context of the business?

DIs the data accurate based on the sources being used?
Explanation:
According to the IIBA's Guide to Business Data Analytics, one of the steps in the data analysis process is to interpret and report results, which involves explaining the meaning, significance, and implications of the results in the context of the business problem and the stakeholders' needs1.When interpreting results, one of the questions the analyst will be asking is what do the results mean in the context of the business, which means how the results relate to the business situation, objectives, and outcomes, and how they can be used to support decision making and action taking2. For example, the analyst may ask how the new government regulation affects the business performance, operations, or strategy, and what recommendations or changes are needed to comply with the regulation and achieve the business goals.
The other options are not correct questions for interpreting results. How will the recipients receive the results is a question for presenting results, not interpreting results.Presenting results is a subsequent step after interpreting results, and it involves choosing the best format, medium, and style to communicate the results to the audience3. Are the right data dimensions being used is a question for analyzing data, not interpreting results.Analyzing data is a prior step before interpreting results, and it involves applying the appropriate techniques, tools, and methods to manipulate, transform, and explore the data4. Is the data accurate based on the sources being used is a question for sourcing data, not interpreting results.Sourcing data is a prior step before analyzing data, and it involves identifying, collecting, and validating the data from the relevant sources5.

Show Answer

Correct Answer: C

Question No. 2

A business analyst manager is planning budgets for the new year, and training opportunities for his team of business analysts. The manager sends out a survey to the team to obtain their top interests within the seven areas of training opportunities. The team results were compared against the manager's personal rating. What can be deduced from the following chart with regards to the

survey results?

AThe team's top interests in training opportunities were aligned with the manager's, which
included Negotiation & Conflict Resolution and Facilitation

BThe team's top interests in training opportunities were aligned with the manager's, which
included Teamwork and Adaptability

CThe manager's rating did not match with the team's rating for any of the training areas

DThe team had equal interest across all training areas

Show Answer

Correct Answer: A

The chart shows the personal rating of the manager and the average team rating on different areas of training opportunities. Both the manager and the team rated ''Negotiation & Conflict Resolution'' and ''Facilitation'' highly, indicating a shared interest in these areas. These areas are also relevant for business analysts, as they involve skills such as communication, collaboration, problem-solving, and stakeholder management12 Reference: 1: 6 Charts You Can Use to Create Effective Reports | SurveyMonkey 2: Business Analysis Core Concept Model (BACCM) - IIBA BABOK Guide v3

Question No. 3

The analytics team has completed their analytics work and have agreed on a set of five key recommendations. They are now discussing how best to communicate these recommendations to the finance, customer service, and marketing teams. Recognizing that this is a diverse set of stakeholders, the business analysis professional reminds the team:

AAll stakeholders should receive information about the recommendation in the same way

BStakeholders only have the ability to understand summarized recommendations

CRecommendations are important and must be communicated with as much detail as possible

DThe recommendation should be communicated in different ways for different stakeholders
Explanation:
According to the Guide to Business Data Analytics, the recommendation is the output of the data analysis that provides suggestions or guidance for actions or decisions based on the data insights. The recommendation should be communicated in different ways for different stakeholders, depending on their needs, preferences, and expectations. The communication should consider the following factors:
The level of detail and complexity: Some stakeholders may require more or less detail and complexity in the recommendation, depending on their role, responsibility, and involvement in the data analysis project. For example, the finance team may need more detail and complexity than the customer service team, as they are more concerned with the financial implications and feasibility of the recommendation.
The format and medium: Some stakeholders may prefer different formats and mediums for receiving the recommendation, depending on their availability, accessibility, and learning style. For example, the marketing team may prefer a visual and interactive format, such as a dashboard or a presentation, than a textual and static format, such as a report or a document.
The tone and language: Some stakeholders may respond better to different tones and languages for the recommendation, depending on their culture, background, and personality. For example, some stakeholders may appreciate a formal and professional tone and language, while others may prefer a casual and friendly tone and language.
The communication should also follow the principles of clarity, accuracy, relevance, and timeliness, as well as adhere to the ethical and legal standards for data privacy and security.

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Correct Answer: D

Question No. 4

A fashion retailer is developing a new line of luxury handbags and would like to evaluate their target market and pricing. After an extensive evaluation based on product features, their target market, and pricing of competitor products, the analytics team has come up with a pricing proposal. On presenting the results, the management team is of the opinion that additional analysis was required before making a decision. What type of additional analysis will help the management team make a decision on pricing?

AHow diverse are the competitors- product portfolios?

BHow can we broaden the target market?

CHow can costs be reduced to improve the profit margin?

DWhat is the breakeven point before profits are generated?
Explanation:
According to the Introduction to Business Data Analytics: A Practitioner View, the breakeven point is the point at which the total revenue equals the total cost of a product or service. The breakeven point indicates the minimum sales volume or price required to cover the fixed and variable costs and to start making a profit. The breakeven point can help the management team make a decision on pricing by showing them how sensitive the profitability is to the price changes and how much margin of safety they have. The breakeven point can also help the management team evaluate the feasibility and risk of the pricing proposal and compare it with alternative scenarios.

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Correct Answer: D

Question No. 5

A business analyst constructs a model they would like to review with key business stakeholders but decides to review the model first with the data scientist who has performed the data analysis. The data scientist provides some suggestions on how to reduce the complexity in the model. One suggestion is to use color to group objects needing to be associated. The data scientist is

encouraging using which Gestalt Principle of Perception with regards to data visualization?

AConnection

BProximity

CSimilarity

DEnclosure

Show Answer

Correct Answer: C

The data scientist is encouraging using the Gestalt Principle of Similarity with regards to data visualization. This principle states that the brain groups objects together that are similar in appearance, such as color, shape, size, or orientation. By using color to group objects needing to be associated, the data scientist is suggesting a way to reduce the complexity in the model and make it easier for the viewers to perceive the patterns and relationships among the data12 Reference: 1: Gestalt Principles For Data Visualization - Topcoder 2: Introduction to Data Visualization: Gestalt Principles

Free IIBA CBDA Exam Actual Questions

The questions for CBDA were last updated On Jan 18, 2025