- (Topic 2)
The analytics team discovers there is an abundance of data available to them from various sources. They are excited about the potential of turning this data into usable information for their organization.They decide to focus the analytics work on:
Correct Answer:
D
According to the IIBA® Guide to Business Data Analytics, analytics work should be driven by well-defined business problems or opportunities that are aligned with the organization??s strategic objectives1. Having an abundance of data does not necessarily mean that all of it is relevant, reliable, or useful for the analytics purpose. Therefore, the analytics team should focus on using the data to answer a limited number of key questions that are derived from the business context and that can generate actionable insights and outcomes. This approach can help the analytics team prioritize the most important data sources, methods, and tools, as well as avoid wasting time and resources on analysis that is not impactful or meaningful for the organization.
References:1: IIBA® Guide to Business Data Analytics, Chapter 3: Business Data Analytics Process, page 24-25
- (Topic 1)
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?
Correct Answer:
C
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]
- (Topic 2)
An HR manager attended a conference where the topic of HR analytics was presented. The manager returned to the office feeling strongly that analytics could be used to guide hiring decisions in the future. Which of the following results would assist the HR team in making such decisions?
Correct Answer:
A
According to the Introduction to Business Data Analytics: A Practitioner View, employee skill gaps are the differences between the skills that employees have and the skills that they need to perform their jobs effectively. Employee skill gaps can affect the productivity, quality, and innovation of an organization. HR analytics can help identify and measure employee skill gaps and provide insights on how to close them. HR analytics can also help guide hiring decisions by finding the best candidates who have the required skills or the potential to acquire them. By using HR analytics to address employee skill gaps, the HR team can improve the alignment of human capital with organizational goals and strategies.
References: Introduction to Business Data Analytics: A Practitioner View, page 17; CBDA Exam Blueprint, page 7; What is HR Analytics? All You Need to Know to Get Started
- (Topic 2)
A private school has decided to include bullet charts in students' end of year performance report. It will depict the student's score against the highest score achieved in that grade, and the qualitative category that the student's score falls under.Should a column chart be used instead?
Correct Answer:
D
A bullet chart is a type of bar chart that shows progress towards a goal or performance against a reference line1. It consists of a bar representing the featured measure, a reference line denoting a target or threshold, and a background with qualitative ranges (such as poor, fair, good, excellent)2. In this case, the featured measure is the student??s score, the reference line is the highest score achieved in that grade, and the background ranges are the qualitative categories that the student??s score falls under. A bullet chart is a good option for this use case because it can display all three criteria in one chart, using minimal space and avoiding clutter. A column chart, on the other hand, would require either multiple columns for each student to show the score, the highest score, and the category, or a separate legend to map the colors of the columns to the categories. This would make the chart less effective in communicating the information and more difficult to compare across students.
References:1: Understanding and Using Bullet Graphs | Tableau, 2: Bullet Charts - What Is It And How To Use It - JSCharting
- (Topic 2)
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?
Correct Answer:
D
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.
References: Introduction to Business Data Analytics: A Practitioner View, page 18; CBDA Exam Blueprint, page 7; [Break-Even Point (BEP) Definition - Investopedia]
