- (Topic 1)
An organization's customers are categorized based on the amount of purchases completed over the last 12 months. The analytics team would like to ensure the accuracy of their survey results and decide to randomly select 500 customers to participate in a survey from this large pool of customers. This is an example of:
Correct Answer:A
Stratified sampling is a technique that divides the population into homogeneous subgroups (strata) based on a relevant characteristic, such as the amount of purchases, and then randomly selects a proportional number of elements from each subgroup to form the sample. Stratified sampling ensures that the sample is representative of the population and reduces the sampling error and bias12. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 312: Statistics for Business and Economics, David R. Anderson et al., 2014, p. 262.
- (Topic 2)
As the organization looks to advance its analytics practices, the topic of provisioning access to executive dashboards and visualizations is under discussion. Establishing standards and implementing role based logins to executive dashboards will address:
Correct Answer:B
According to the Guide to Business Data Analytics, data security is the protection of data from unauthorized access, use, modification, or destruction. Data security includes the policies, procedures, and technologies that ensure the confidentiality, integrity, and availability of data. Data security is an important aspect of data management, which is the planning, execution, and oversight of the data lifecycle. Data security is also related to data governance, which is the establishment and enforcement of rules, roles, and responsibilities for data quality, access, and usage. Data security is not the same as content management, which is the creation, storage, distribution, and maintenance of digital content.
One of the ways to enhance data security is to provision access to executive dashboards and visualizations based on the roles and permissions of the users. This can help prevent unauthorized or inappropriate access to sensitive or confidential data, as well as ensure compliance with data privacy and ethical standards. By establishing standards and implementing role based logins to executive dashboards, the organization can address the data security needs of its analytics practices.
References: Guide to Business Data Analytics, page 52-53; CBDA Exam Blueprint, page 7; Introduction to Business Data Analytics: An Organizational View, page 10.
- (Topic 2)
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?
Correct Answer:C
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.
- (Topic 1)
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?
Correct Answer:B
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.
- (Topic 1)
A call center has requested to review their sales conversion data for the month. The analyst working on this request is trying to identify the chart that will effectively present the data, which includes: the number of leads, the number of calls made, the number of calls completed, the number of customers interested and the number of sales. What chart should the analyst use to show the values across each stage of the pipeline?
Correct Answer:B
A funnel chart is a type of chart that shows the values of different stages of a process, such as a sales pipeline, where each stage represents a subset of the previous one. A funnel chart is useful for showing the conversion rate, the drop-off rate, and the potential revenue or profit at each stage12. A funnel chart would be an effective way to present the data requested by the call center, as it would show the number of leads, calls, customers, and sales, as well as the percentage of change between each stage. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 662: Data Visualization: A Practical Introduction, Kieran Healy, 2018, p. 233.