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Question No: 1

MultipleChoice

A food and beverage company would like to administer a survey to obtain customer insights about a new cookie product recently launched. A data team is asked to build the survey paying careful attention to reduce the degree of sampling error. Which criteria would help the team meet this objective?

Options

ALarge sample size and variation in the target population

BLarge sample size and random selection of the target population

CSmall sample size and specific subset of the target population

DSmall sample size and using customers who agreed to take the survey
Explanation:
Sampling error is the difference between the results obtained from a sample and the results obtained from the population from which the sample is drawn1.Sampling error can affect the validity, reliability, and generalizability of the survey results2. To reduce the degree of sampling error, the data team should use a large sample size and a random selection of the target population.A large sample size means that the sample is more likely to represent the diversity and variability of the population, and that the results are more precise and accurate3.A random selection of the target population means that every member of the population has an equal chance of being included in the sample, and that the results are less biased and more representative4.
The other criteria would not help the team meet this objective, as they would increase the degree of sampling error. A large sample size and variation in the target population would not reduce the sampling error, as variation refers to the differences or heterogeneity within the population, not the sample.Variation in the target population can increase the sampling error, as it makes it harder to capture the true characteristics of the population with a sample5. A small sample size and specific subset of the target population would not reduce the sampling error, as they would make the sample less representative and more prone to bias. A small sample size means that the sample is less likely to reflect the diversity and variability of the population, and that the results are less precise and accurate. A specific subset of the target population means that the sample is not randomly selected, but based on some criteria or convenience, and that the results are more biased and less representative. A small sample size and using customers who agreed to take the survey would not reduce the sampling error, as they would also make the sample less representative and more prone to bias. A small sample size has the same drawbacks as mentioned above.Using customers who agreed to take the survey means that the sample is not randomly selected, but based on self-selection or voluntary response, and that the results are more biased and less representative.

Question No: 2

MultipleChoice

An analytics team employed at a leading credit card company is utilizing data analytics to identify unusual credit card purchases.

They have created the following visual. How many extreme outliers exists in this dataset?

Options

A0

B5

C3

D2

Question No: 3

MultipleChoice

What type of data model describes the highest level of relationship between entities and represents how a business perceives its information?

Options

AConceptual

BEntity Relationship

CLogical

DPhysical
Explanation:
According to the Guide to Business Data Analytics, a conceptual data model is a type of data model that describes the highest level of relationship between entities and represents how a business perceives its information. A conceptual data model is independent of any specific technology or implementation details. It focuses on the key concepts and their attributes, as well as the business rules and constraints that govern them. A conceptual data model can help communicate the business requirements and scope of the data analysis project to various stakeholders.

Question No: 4

MultipleChoice

From a prior analytics study, a telecommunications company has concluded that due to the maturity of the market the cost of obtaining new customers is on the rise. As a result, the company wants to increase their efforts on retaining customers. One of the key performance indicators that will help them track their progress in this area is the rate at which customers leave/unsubscribe from their services over a given time period. Which performance indicator is this referring to?

Options

ASubscription rate

BAcquisition rate

CChurn rate

DRetention rate
Explanation:
According to the Introduction to Business Data Analytics: A Practitioner View, churn rate is a measure of customer attrition, or the percentage of customers who stop using a product or service over a given time period. Churn rate is an important indicator of customer satisfaction, loyalty, and retention. A high churn rate implies that customers are dissatisfied or have found better alternatives, which can negatively affect the revenue and growth of a business. A low churn rate implies that customers are satisfied and loyal, which can positively affect the revenue and growth of a business. In this situation, the telecommunications company wants to increase their efforts on retaining customers, so they need to track their churn rate and try to reduce it.

Question No: 5

MultipleChoice

Results of the data analysis have been analyzed and the team was confident with the results but also quite surprised the outcome was not what was expected. In pondering the value of what can be gleaned from the data, the team has no feasible solution to put forth to address the business need. A logical next step would be to:

Options

ARepeat the business analytics cycle with the formation of a new research question

BProvide the results to a 2nd analytics team to see if similar conclusions are drawn

CAnalyze the data again, to determine if any insights were overlooked

DCheck the quality of the data that was used for the analysis

Question No: 6

MultipleChoice

A real estate broker is tracking monthly sales between two of its teams. The results have been visualized. What insights can be drawn from the chart?

Options

AQ2 was the strongest performing quarter with Team B having the top monthly sales in May

BQ3 was the strongest performing quarter with Team A having the top monthly sales in the
quarter

CQ4 was the lowest performing quarter with November having the lowest monthly sales in
the year

DQ4 was the lowest performing quarter with Team A having the lowest monthly sales in the
Quarter

Free IIBA CBDA Exam Dumps August 2026