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IIBA Exam CBDA Topic 2 Question 30 Discussion

Actual exam question for IIBA's CBDA exam
Question #: 30
Topic #: 2
[All CBDA Questions]

A large telecommunications company wants to increase their Average Revenue Per User per month by 5%, by end of year, to increase revenue in a highly competitive market. From a SMART target perspective, what is missing?

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Suggested Answer: C

Covariance measures the directional relationship between the returns on two assets. A positive covariance means that asset returns move together while a negative covariance means they move inversely. Zero covariance indicates that the returns on the two assets move independently of each other. In the context of a scatter plot, zero covariance is represented by a plot where the points do not show any upward or downward trend but are rather scattered randomly on the graph with no discernible pattern.

Graph 4 displays such a pattern where there is no apparent relationship between the variables on the x and y axes, indicating that there is zero covariance between them.


by Erick at Jan 25, 2025, 03:27 PM

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Rodney
16 days ago
I'm just glad they're not asking us to increase ARPU by 50%. That would be a real head-scratcher!
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Enola
25 days ago
C is interesting, but I disagree. In a highly competitive market, focusing on ARPU is important for revenue growth, even if it means not increasing the customer base as much.
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Talia
26 days ago
Haha, B is too easy? I wish all my targets were that easy! Sign me up for that job!
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Isidra
1 months ago
A is also a good point. The target should specify a timeline for when the increase needs to be achieved, not just by the end of the year.
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Ty
1 days ago
C) R - Since competition is high, focus should be on increasing customer base and not on ARPU
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Tiera
2 days ago
A) T - The increase should be seen sooner
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Viola
1 months ago
I think the correct answer is D. The target is missing the specific product group or line it pertains to. Without that information, it's hard to really measure and achieve the 5% increase in ARPU.
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Lemuel
3 days ago
True, the target should be more specific to make it achievable and measurable.
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Alberta
9 days ago
I think we should also consider increasing customer base along with ARPU to stay competitive.
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Magdalene
15 days ago
I agree, without knowing which product group the target is for, it's hard to focus efforts.
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Talia
1 months ago
I agree, without that information, it's hard to measure success.
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Gail
2 months ago
Yeah, it should mention which product group the target applies to.
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Laine
2 months ago
I think the target is missing specificity.
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