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IIBA CBAP Exam - Topic 4 Question 122 Discussion

Posted by Kat on Nov 30, 2025 at 05:43 AM

An insurance company wants to implement a business intelligence solution to consolidate data from various different internal system to provide a better understanding of their customer base.

A business analysis (BA) is engaged to put together a tender (bid) to be sent to various business intelligence providers and implementation partners. Among other information the business analysis requests the following:

* Licensing costs for year 0 based on needing 1 Central processing Unit (CPU) license

* Licensing costs for specific user types such as Report Creators Online Analytical Process (OLAO) user and Power users

* Predicted licensing costs for renewing in Years 1 and 2

* Full implementation costs

After reviewing the received vendor responses the project team shortlists the candidates to 3 and the BA structures the received information as follows:

The Insurance company has a maximum bucket of $310,000 for the entire to implementation and operation over the first three years. Which vendor or vendors meet that criterion?

Suggested Answer: B

Based on the table in the image, the total cost for each company over the three years can be calculated by adding the Year 0 license costs, Years 1 and 2 total license costs, and implementation costs. For Company A, the total cost is $323,458 (Year 0) + $270,092 (Years 1 and 2) + $28,500 (Phase Ia) + $55,000 (Phase Ib) + $121,500 (Phase 2) = $798,550. For Company B, it's $373,555 (Year 0) + $202,056 (Years 1 and 2) + ($1.500150 days of implementation)= $578611 which is less than the insurance company's maximum budget of $310000. For Company C it's = ($400244+$214096+($31.50159))= $695439 which exceeds the budget.Reference: The answer is derived from a direct calculation based on the provided information in the image and does not reference specific CBAP learning documents or resources.


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29 comments · newest first
GR
Gregg 7 months ago
I’m leaning towards both B and C for sure.
KA
Karl 7 months ago
Company C is the most cost-effective option.
MA
Magnolia 7 months ago
I feel like both A and C could work.
BR
Brunilda 7 months ago
But Company A has good features too.
AN
Angella 7 months ago
I think Company B fits the budget.
YE
Yesenia 8 months ago
This question is tricky!
CH
Chauncey 8 months ago
Definitely going with Company B, they have the best pricing.
IS
Isadora 8 months ago
Surprised that Company A is even an option, their costs seem high.
RO
Rosalind 9 months ago
I think both A and C are under the limit too.
LE
Leonard 9 months ago
If I recall correctly, we had a case where two vendors were under budget, but one had hidden costs. I hope that’s not the case here!
ED
Edgar 9 months ago
I think Company B was the most cost-effective option in our practice scenarios, but I need to double-check the total costs for all three vendors to be sure.
GA
Gail 9 months ago
Company A's implementation costs are way too high. I'd steer clear of them if I were the insurance company.
CA
Carissa 9 months ago
Haha, looks like the insurance company is trying to get the most bang for their buck. Gotta love that cost-cutting mentality!
TR
Truman 9 months ago
I'm not so sure. Company C's licensing costs seem a bit high for the long term. Might be better to go with A or B.
ED
Edelmira 10 months ago
Looks like Company B is the clear winner here. Their total cost is well within the $310,000 budget.
PE
Peter 10 months ago
I'm feeling pretty good about this one. The key is just carefully adding up all the relevant costs for each vendor option. As long as I don't miss anything, I think I can nail this question.
AY
Ayesha 10 months ago
This seems straightforward enough, but I want to double-check my work. I'll make sure to show all my calculations step-by-step so I can be confident in my final answer.
JO
Jose 10 months ago
Okay, I think I've got a handle on this. I'll calculate the total 3-year cost for each vendor by adding up the year 0 licensing, implementation, and the predicted years 1 and 2 renewal costs. Then I'll compare that to the $310,000 budget.
AN
Andra 10 months ago
I'm a bit confused by the different user types and how that impacts the licensing costs. I'll need to carefully review the details for each vendor to understand how that factor in.
HO
Hollis 10 months ago
Company B fits the budget perfectly!
BE
Benton 11 months ago
I remember we practiced a similar question about vendor selection based on budget constraints. I think we need to add up the costs for each vendor to see who fits within the $310,000 limit.
JU
Julie 11 months ago
Not sure if the estimates for Year 2 are accurate, could be misleading.
KA
Kattie 11 months ago
I'm a bit unsure about how to interpret the licensing costs for the different user types. Do we need to factor those into the total implementation cost?
PE
Pearly 11 months ago
This looks like a pretty straightforward question, just need to add up the costs for each vendor and see which one(s) fit within the $310,000 budget.
CA
Carman 6 months ago
↳ replying to Pearly
So, are we leaning towards option A or B?
RE
Renato 6 months ago
↳ replying to Pearly
Yeah, I think B and C might fit better within the budget.
LO
Louvenia 6 months ago
↳ replying to Pearly
Company A seems to have higher costs, right?
CA
Cassi 7 months ago
↳ replying to Pearly
Good idea! We need to check the total for A, B, and C.
CA
Carman 11 months ago
↳ replying to Pearly
Let's break down the costs for each vendor.
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