The Realest Study Materials CBDA Dumps Updated May 06, 2024
LATEST CBDA Exam Practice Material
NEW QUESTION # 45
A professional association is funded by membership fees. The membership renewal occurs every 5 years.
Although, they have a strong subscription rate each year, their renewal rate is low. They are working with an external firm specializing in Business Analytics to identify the groups of customers that have a high likelihood of cancelling their subscription after their first 5-year term ends. This type of study is called:
- A. Supervised learning
- B. Trained learning
- C. Unsupervised learning
- D. Untrained learning
Answer: C
Explanation:
Unsupervised learning is a type of study that involves finding patterns or clusters in data without any predefined labels or outcomes. It is useful for exploring data and discovering hidden structures or groups of customers. For example, the professional association can use unsupervised learning to identify the characteristics of customers who are likely to cancel their subscription after their first 5-year term ends, and then design strategies to retain them12 References: 1: What is Unsupervised Learning? - IBM 2: Unsupervised Learning - IIBA BABOK Guide v3
NEW QUESTION # 46
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. Weighting
- B. Factor analysis
- C. Clustering
- D. Scale validation
Answer: A
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 # 47
A large car manufacturer is interested in comparing the number of sales for a specific model of electric car across all 50 US states.
The data analytics team sourced and acquired the data, and the business analyst created the model to compare sales across states.
In a meeting to review the results, the feedback received included several complaints concerning an inability to distinguish the number of sales per state. What model would result in such confusion?
- A. Bar chart
- B. Pie chart
- C. Dual axis chart
- D. Bullet chart
Answer: B
Explanation:
A pie chart is a circular chart that shows the proportion of each category in a whole by dividing the circle into slices. A pie chart would result in confusion when comparing the number of sales for a specific model of electric car across all 50 US states, because it is difficult to compare the angles and areas of the slices, especially when there are many categories with similar values. A pie chart also does not show the absolute values of each category, unless they are labeled or annotated12. A better alternative would be a bar chart, which can show the number of sales for each state along a common axis, making it easier to compare and rank the values3. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 652: Storytelling with Data, Cole Nussbaumer Knaflic, 2015, p. 673: The Visual Display of Quantitative Information, Edward R. Tufte, 2001, p.
178.
NEW QUESTION # 48
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. By ranking, it provided additional insight on how the attendee performed in comparison to other attendees
- B. 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
- C. The percentile score provides value by assessing the attendee's score against the average score for that exam
- D. The percentile score does not add any additional value in assessing the attendee's performance
Answer: A
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 # 49
An analytics team has completed some initial data analysis but is considering revising their research question based on their analysis findings. The team was concerned the original question was too broad. What outcome would lead the team to have this concern?
- A. Difficult to identify the KPIs to measure
- B. Data the team had planned to use was not available
- C. Data once analyzed had significant data quality issues
- D. The source data sets could not be merged
Answer: A
Explanation:
Explanation
A research question is a clear and focused question that guides the data analytics process and defines the expected outcome or value of the analysis1. A research question that is too broad may lead to the concern of being difficult to identify the key performance indicators (KPIs) to measure, as KPIs are specific, quantifiable, and relevant metrics that indicate the progress and success of the analysis in relation to the research question23. A broad research question may also result in too much or too little data, unclear or conflicting objectives, or irrelevant or ambiguous results4. References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 202: Guide to Business Data Analytics, IIBA, 2020, p. 233: Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, David Parmenter, 2015, p. 34: How to Write a Good Research Question, ThoughtCo, 2021, 1.
NEW QUESTION # 50
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:
- A. All stakeholders should receive information about the recommendation in the same way
- B. Recommendations are important and must be communicated with as much detail as possible
- C. The recommendation should be communicated in different ways for different stakeholders
- D. Stakeholders only have the ability to understand summarized recommendations
Answer: C
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.
References: Guide to Business Data Analytics, page 50-51; CBDA Exam Blueprint, page 7; [Introduction toBusiness Data Analytics: A Practitioner View], page 16.
NEW QUESTION # 51
An insurance company has seen an upward trend in winter-related accidents over the past three years. The company has just completed an analytics study to better understand the primary reasons for these accidents and assess how many of the drivers were using winter tires. This analysis will help the company decide how to move forward with drivers not taking precautionary measures during winter. What type of analysis will help in determining the primary reasons and percentage of those drivers with winter tires?
- A. Descriptive and Diagnostic
- B. Descriptive and Predictive
- C. Prescriptive
- D. Descriptive
Answer: A
Explanation:
Explanation
Descriptive analytics is a type of analytics that summarizes and visualizes the data to provide an overview of what has happened or is happening, such as the trend of winter-related accidents over the past three years, or the percentage of drivers using winter tires12. Diagnostic analytics is a type of analytics that explores and analyzes the data to understand why something has happened or is happening, such as the primary reasons for these accidents, or the factors that influence the drivers' decisions13. To answer the question, both descriptive and diagnostic analytics would be needed to provide the relevant information and insights for the company.
References: 1: Guide to Business Data Analytics, IIBA, 2020, p. 182: Business Analytics: Data Analysis & Decision Making, S. Christian Albright and Wayne L. Winston, 2015, p. 53: Data Science for Business, Foster Provost and Tom Fawcett, 2013, p. 13.
NEW QUESTION # 52
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?
- A. Predictive
- B. Prescriptive
- C. Diagnostic
- D. Descriptive
Answer: A
Explanation:
Predictive analytics is a type of analytics that uses historical and current data, as well as statisticaland 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. References: 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.
NEW QUESTION # 53
The outcome from an analytics initiative has resulted in key stakeholders wanting to move forward with a project to redesign the company's website. The business analyst has called a meeting to work on drafting a plan to assess the level of effort required to complete this work. Many of the invited participants redesigned the website before and were invited so they could provide estimates using their knowledge and experience from the past. The business analyst is using which method to estimate this work?
- A. Parametric
- B. Rough order of magnitude
- C. Rolling wave
- D. PERT
Answer: B
Explanation:
The business analyst is using the rough order of magnitude method to estimate this work. This method is based on expert opinion or experience from past projects, and it provides a quick and approximate estimate of the cost, time, or effort required for a project or a task. This method is useful when there is limited information or data available, or when a high-level estimate is needed for planning or budgeting purposes. However, this method 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 # 54
DIAGRAM TAKEN
A data scientist is analyzing a dataset to determine if there is a strong relationship between twovariables. A measure of covariance is done. Which of the following graphs indicate Zero Covariance between variables?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
Explanation:
In the context of Business Data Analytics (IIBA®- CBDA), zero covariance between two variables indicates that there is no linear relationship between those variables. When the covariance is zero, it means the variables are independent of each other. In the provided options, graph 4 shows a random scatter of data points without any apparent trend or pattern, indicating zero covariance.
References: The explanation is in alignment with the concepts and principles outlined in IIBA's resources on Business Data Analytics, particularly focusing on statistical analysis and data interpretation.
NEW QUESTION # 55
As the team discusses how to utilize the results of their data analysis to put forth a business recommendation, an analyst on the team voices concern over the current organizational culture presenting a roadblock to their ability to influence business decision making. Which of the following would be a justifiable concern at this stage of the team's efforts?
- A. Finding data that creates value creating difficulties, as not all data helps a business make better decisions
- B. Changing the mindsets of business stakeholders to trust insights gleaned from data over experience and intuition
- C. Applying a myopic view of data and establishing data silos which create roadblocks to exploring available data sources
- D. Difficulty bringing business stakeholders to a shared understanding about value when sharing data assets across business domains
Answer: B
Explanation:
Explanation
A justifiable concern at this stage of the team's efforts is changing the mindsets of business stakeholders to trust insights gleaned from data over experience and intuition. This is because some stakeholders may have a strong attachment to their own opinions or beliefs, and may resist or ignore data that contradicts them. This can create a barrier to data-driven decision making, which requires a culture of curiosity, openness, and evidence-based reasoning. The team needs to communicate the value and validity of their data analysis, and persuade the stakeholders to adopt a data-driven mindset12 References: 1: Use Data to Accelerate Your Business Strategy 2: Data-Driven Decision Making: A Step-by-Step Guide
NEW QUESTION # 56
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?
- A. Commentary around why each graphic was selected to provide additional context
- B. A narrative that supports insights with additional context and draws correlations
- C. The data tables that support the visuals and help answer questions
- D. Notes on assumptions and unavailable data for analysis
Answer: B
Explanation:
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.
NEW QUESTION # 57
The analytics team has been asked to assess sales data from their company's website with the hopes of providing insights to help increase online sales. It's the first time the team is looking at this specific data and they are concerned about the quality of data that has been captured. They decide to use the following approach as the next step:
- A. Classification analysis
- B. Data Analysis
- C. Exploratory analysis
- D. Trend Analysis
Answer: C
Explanation:
Explanation
Exploratory analysis is the approach that the analytics team should use as the next step, because it is a technique that allows them to examine the quality, structure, and characteristics of the data, without making any assumptions or hypotheses. Exploratory analysis can help the team identify any issues or anomalies in the data, such as missing values, outliers, or errors, and decide how to handle them. Exploratory analysis can also help the team discover any patterns, trends, or relationships in the data, and generate new research questions or hypotheses for further analysis. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 3:
Analyze Data
*Understanding the Guide to Business Data Analytics, page 16
*CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK - IIBA®, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 8
NEW QUESTION # 58
A dataset contains 10 measures of workplace sustainability. The analytics team is in need of producing a single score of sustainability. Which of the following techniques if used would achieve this objective?
- A. Logistic regression
- B. K means clustering
- C. Factor analysis
- D. Linkage algorithms
Answer: C
Explanation:
Explanation
Factor analysis is the technique that, if used, would achieve the objective of producing a single score of sustainability, because it is a technique that reduces the dimensionality of a data set by identifying the underlying factors or latent variables that explain the variation and correlation among the observed variables.
Factor analysis can help the analytics team combine the 10 measures of workplace sustainability into a smaller number of factors, and then derive a composite score of sustainability based on the factor loadings and weights. Factor analysis can also help the analytics team simplify and interpret the data, and identify the key drivers of sustainability. References:
*Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 3:
Analyze Data
*Understanding the Guide to Business Data Analytics, page 17
*Business Data Analytics (IIBA®-CBDA Exam preparation) | Udemy, Section 3: Analyze Data, Lecture 15:
Factor Analysis
NEW QUESTION # 59
An analyst is interested in providing a visual diagram to compare and contrast the characteristics of four different solution options. Each option should be represented by their cost, value, and risk level. What type of chart would accomplish this task?
- A. Pie
- B. Bullet
- C. Waterfall
- D. Bubble
Answer: D
Explanation:
A bubble chart is a type of chart that displays three dimensions of data: the x-axis, the y-axis, and the size of the bubble. A bubble chart can be used to compare and contrast the characteristics of different solution options by plotting their cost, value, and risk level on the three axes. For example, a solution option with a high cost, high value, and low risk would be represented by a large bubble on the upper left corner of the chart, while a solution option with a low cost, low value, and high risk would be represented by a small bubble on the lower right corner of the chart. A bubble chart can help the analyst and the stakeholders to visualize the trade-offs and benefits of each solution option and to select the most optimal one based on the business objectives and constraints. References: Guide to Business Data Analytics, page 77; Introduction to Business Data Analytics:
A Practitioner View, page 16; [Business Data Analytics: A Practical Guide], page 121.
NEW QUESTION # 60
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. Redo the survey looking for a larger sample size
- B. Change their recommendation realizing they have been victims of linear bias
- C. Question why management would only want them to test two price points
- D. Use their original recommendation given that the volume of sales is much higher
Answer: B
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 # 61
A consumer goods manufacturer has recently completed an analytics study to understand how to improve its operational excellence. From the top highlights, online sales outperformed other channels in sales growth and there was a direct relationship between positive customer reviews and increased internet sales. Which strategic business decision may be logically derived from these results?
- A. Improve operational efficiencies
- B. Create an empowered and collaborative work culture
- C. Improve quality of the products
- D. Encourage customers to complete online reviews
Answer: D
Explanation:
Explanation
The strategic business decision that may be logically derived from the results is to encourage customers to complete online reviews, because the results show that there is a direct relationship between positive customer reviews and increased internet sales. By increasing the number and quality of online reviews, the consumer goods manufacturer can boost its online sales performance, which outperformed other channels in sales growth. Online reviews can also help the manufacturer gain customer feedback, improve customer loyalty, and enhance its brand reputation. 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 6
NEW QUESTION # 62
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?
- A. Are the right data dimensions being used?
- B. Is the data accurate based on the sources being used?
- C. How will the recipients receive the results?
- D. What do the results mean in the context of the business?
Answer: D
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.
References:1: Guide to Business Data Analytics, IIBA, 2020, p. 572: Introduction to Business Data Analytics:
A Practitioner View, IIBA, 2019, p. 253: Guide to Business Data Analytics, IIBA, 2020, p. 584: Guide to Business Data Analytics, IIBA, 2020, p. 555: Guide to Business Data Analytics, IIBA, 2020, p. 45. : Guide to Business Data Analytics, IIBA, 2020, p. 57. : Introduction to Business Data Analytics: A Practitioner View, IIBA, 2019, p. 25. : Guide to Business Data Analytics, IIBA, 2020, p. 58. : Guide to Business Data Analytics, IIBA, 2020, p. 55. : Guide to Business Data Analytics, IIBA, 2020, p. 45.
NEW QUESTION # 63
......
Study HIGH Quality CBDA Free Study Guides and Exams Tutorials: https://www.real4dumps.com/CBDA_examcollection.html
New CBDA Actual Exam Dumps, IIBA Practice Test: https://drive.google.com/open?id=17xk9858k7W-rgCRpS7HcBO95qbJay36l
