- (Topic 1)
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?
Correct 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. References:
•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®
- (Topic 1)
Based on the financial analysis that's been completed by the analytics team, the business analysis professional reminds the team that the most financially feasible option is the one with the:
Correct Answer:B
The most financially feasible option is the one that maximizes the return on investment (ROI), the present value (PV), and the net present value (NPV), and minimizes the payback period. ROI measures the annual percentage return of an investment, PV measures the current value of future cash flows, NPV measures the difference between the PV and the initial cost of an investment, and payback period measures the time it takes to recover the initial cost of an investment. A higher ROI, PV, and NPV indicate a more profitable and valuable investment, while a lower payback period indicates a faster recovery and lower risk of an investment
- (Topic 1)
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?
Correct Answer:A
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/
- (Topic 2)
A toy manufacturing company wants to improve operational efficiencies as a means of reducing costs. The Operational Manager wants an analytics study to identify areas of improvement within their operational processes. During a meeting with the analyst, the Operational Manager mentions concerns about old machinery and suggests this be the area of focus for the study. They can have a touchpoint in three weeks to assess progress. Has the Operational Manager limited the potential of this study?
Correct Answer:A
According to the Guide to Business Data Analytics, one of the key competencies of a business data analyst is to identify the research questions that guide the analytics work1. The research questions should be based on the business problem or opportunity, the stakeholder needs, and the data availability and quality2. By providing the focus area of the study, the Operational Manager has limited the scope of the study with their biased opinion, as they have not considered other possible factors that might affect theoperational efficiencies, such as demand, inventory, quality, labor, or customer satisfaction. The Operational Manager has also not involved other stakeholders who might have different perspectives or interests in the study. This could lead to a narrow or incomplete analysis that might miss some important insights or recommendations. The Operational Manager should instead collaborate with the analyst to define the research questions that are relevant, specific, measurable, achievable, and time-bound3.
The other options are not correct, as they do not address the issue of defining the research questions. The Operational Manager is not necessarily the expert on the operational processes, as they might have a limited or biased view of the situation. The Operational Manager has not limited the scope of the budget by providing a timeline of three weeks, as this is a reasonable time frame for an analytics study, depending on the complexity and availability of the data. The Operational Manager has not helped the analyst stay on track with time and budget by providing the focus areas, as this might actually waste time and resources if the focus areas are not aligned with the actual business problem or opportunity.
References:1: Guide to Business Data Analytics, IIBA, 2020, p. 312: Introduction to Business Data Analytics: A Practitioner View, IIBA, 2019, p. 113: Introduction to Business Data Analytics: An Organizational View, IIBA, 2019, p. 12.
- (Topic 1)
The analytics team has established two equally strong potential recommendations which will deliver the desired outcomes with similar benefits to be derived from each one. On the surface there is no discernable difference in costs or schedule for either option. To help the analytics team reach arecommendation the business analysis professional recommends the team:
Correct Answer:B
Assessing risks for each option is the recommendation that the business analysis professional should make to the analytics team, because it is a technique that involves identifying, analyzing, and evaluating the potential positive or negative impacts of each option on the project, the organization, or the stakeholders. Assessing risks can help the team compare the pros and cons of each option, and determine which one has the highest expected value or the lowest expected loss. Assessing risks can also help the team prepare contingency plans or mitigation strategies for the chosen option, and communicate the rationale and assumptions behind their recommendation. 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
•CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA®, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 12