IIBA CBDA Exam - Topic 1 Question 24 Discussion

An analyst supporting the Marketing department for a specialty retailer has been asked to look through past sales data to help guide product decisions. The business sponsor for this initiative would first like to know 'What is the most profitable product line?'. What type of analytics is the analyst going to perform to address this question?

C) Descriptive

A) Predictive

B) Diagnostic

D) Prescriptive Explanation: According to the Guide to Business Data Analytics, descriptive analytics is a type of analytics that summarizes and presents data in a meaningful way. Descriptive analytics uses techniques such as statistics, charts, tables, and dashboards to provide an overview of what has happened or is happening in the dat a. Descriptive analytics can help answer questions such as who, what, when, where, and how. In this situation, the analyst has been asked to look through past sales data to help guide product decisions. The business sponsor for this initiative would first like to know 'What is the most profitable product line?'. This is a descriptive analytics question, as it involves summarizing and presenting the past sales data by product line and calculating the profit margin for each product line.

IIBA CBDA Exam - Topic 1 Question 24 Discussion

Actual exam question for IIBA's CBDA exam

Question #: 24
Topic #: 1

[All CBDA Questions]

APredictive

BDiagnostic

CDescriptive

DPrescriptive
Explanation:
According to the Guide to Business Data Analytics, descriptive analytics is a type of analytics that summarizes and presents data in a meaningful way. Descriptive analytics uses techniques such as statistics, charts, tables, and dashboards to provide an overview of what has happened or is happening in the dat
a. Descriptive analytics can help answer questions such as who, what, when, where, and how. In this situation, the analyst has been asked to look through past sales data to help guide product decisions. The business sponsor for this initiative would first like to know 'What is the most profitable product line?'. This is a descriptive analytics question, as it involves summarizing and presenting the past sales data by product line and calculating the profit margin for each product line.

Show Suggested Answer

Suggested Answer: C

by Elli at Sep 18, 2024, 08:30 AM

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Keith

10 months ago

Descriptive makes sense, but I wonder if they’ll miss trends in the data.

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Eun

10 months ago

Wait, so they’re not predicting future sales? That’s surprising!

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Elliott

10 months ago

I thought it might be diagnostic since they want to know profitability?

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Yvonne

10 months ago

Agreed, it’s all about summarizing the data.

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Jovita

11 months ago

Definitely descriptive analytics! Just looking at past sales.

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Junita

11 months ago

I feel like prescriptive analytics might come into play later, but for this specific question, it seems like descriptive is the right choice.

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Lorita

11 months ago

This reminds me of a practice question where we had to identify the most profitable product line too. I think it was also descriptive analytics then.

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Alexis

11 months ago

I'm not entirely sure, but I remember something about diagnostic analytics being used to find reasons behind trends.

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Barney

11 months ago

I think this question is about descriptive analytics since it focuses on summarizing past sales data.

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Helga

11 months ago

Descriptive analytics, got it. I'll need to pull the relevant data, calculate some key metrics like revenue and profit per product line, and then identify the most profitable one. Shouldn't be too tricky as long as I have the right data.

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Madelyn

11 months ago

Okay, I've got this. Descriptive analytics is exactly what I need to find the most profitable product line. I'll aggregate the sales and profit data, calculate the profit margins, and the product line with the highest margin is the winner.

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Catalina

11 months ago

Hmm, I'm not totally sure about this one. Is descriptive analytics the right approach, or should I be looking at something more predictive? I'll need to review the different types of analytics to make sure I'm on the right track.

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Roslyn

12 months ago

This seems like a straightforward descriptive analytics question. I'll need to pull the sales and profit data by product line, then identify the most profitable one.

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Salina

12 months ago

Hmm, this question seems to be testing my understanding of the differences between walkthroughs and inspections. I'll need to think carefully about the key characteristics of each approach.

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Krissy

2 years ago

Haha, I bet the 'most profitable product line' is the one that sells the most fidget spinners. Just a wild guess.

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Vince

2 years ago

A: That's right, it will help answer questions like 'What is the most profitable product line?'

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Nidia

2 years ago

B: Yeah, descriptive analytics summarizes past sales data to provide an overview of what has happened.

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Kimberlie

2 years ago

A: I think the analyst will perform descriptive analytics to find out the most profitable product line.

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Zona

2 years ago

So, the analyst will use descriptive analytics to determine the most profitable product line based on past sales data.

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Wenona

2 years ago

Yes, I agree. Descriptive analytics summarizes and presents data in a meaningful way.

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Josphine

2 years ago

Yep, I agree. Descriptive analytics is the way to go. Gotta look at that past sales data to see which product line is bringing in the big bucks.

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Dottie

2 years ago

Descriptive analytics - that's the one that looks at what's already happened, right? Seems like the obvious choice here to find the most profitable product line.

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Janey

2 years ago

B: So, the analyst will use descriptive analytics to determine the most profitable product line based on past sales data.

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Filiberto

2 years ago

A: Yes, descriptive analytics summarizes past data to provide an overview of what has happened.

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Valentine

2 years ago

I think the analyst will perform descriptive analytics.

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