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IIBA CBAP Exam - Topic 4 Question 122 Discussion

Actual exam question for IIBA's CBAP exam
Question #: 122
Topic #: 4
[All CBAP Questions]

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?

Show Suggested Answer Hide Answer
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.


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

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Yesenia
1 day ago
This question is tricky!
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Chauncey
7 days ago
Definitely going with Company B, they have the best pricing.
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Isadora
25 days ago
Surprised that Company A is even an option, their costs seem high.
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Rosalind
1 month ago
I think both A and C are under the limit too.
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Leonard
1 month 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!
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Edgar
1 month 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.
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Gail
2 months ago
Company A's implementation costs are way too high. I'd steer clear of them if I were the insurance company.
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Carissa
2 months ago
Haha, looks like the insurance company is trying to get the most bang for their buck. Gotta love that cost-cutting mentality!
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Truman
2 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.
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Edelmira
2 months ago
Looks like Company B is the clear winner here. Their total cost is well within the $310,000 budget.
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Peter
2 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.
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Ayesha
2 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.
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Jose
3 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.
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Andra
3 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.
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Hollis
3 months ago
Company B fits the budget perfectly!
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Benton
3 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.
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Julie
4 months ago
Not sure if the estimates for Year 2 are accurate, could be misleading.
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Kattie
4 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?
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Pearly
4 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.
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Carman
3 months ago
Let's break down the costs for each vendor.
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