IIBA Exam CBAP Topic 3 Question 84 Discussion

Actual exam question for IIBA's CBAP exam

Question #: 84
Topic #: 3

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 implemention partners. Among other information the business analysis request 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 criteria?

ABoth companies B and C

BCompany B

CCompany A

DBoth companies A and C

Show Suggested Answer

Suggested Answer: C

by Kirk at Apr 13, 2024, 10:44 AM

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Sylvia

6 months ago

I see your point. Let's stick with company B for now.

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Kerry

6 months ago

Yeah, and if we go with both companies A and C, we might end up exceeding our budget.

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Santos

6 months ago

That's true, but we need to stay within our budget. Company B fits that criteria.

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Sylvia

6 months ago

I'm not sure, company A might have some advantages that we haven't considered.

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Kerry

6 months ago

I agree, company B seems like the best option based on our budget.

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Santos

7 months ago

I think we should go with either company B or both companies A and C.

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Lourdes

7 months ago

That's true, Company B might be the safer choice but considering both B and C could be worth exploring.

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Tawanna

7 months ago

I believe both companies B and C could also be viable options.

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Dierdre

7 months ago

Because their total predicted costs for the first three years are within the maximum budget of $310,000.

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Lourdes

8 months ago

Why do you think Company B is the best choice?

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Dierdre

8 months ago

I think Company B meets the budget criteria.

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Armando

9 months ago

Good point. It's always better to have a little buffer room, just in case. Plus, Company C has a bit lower licensing costs in Years 1 and 2, so that could end up saving some money in the long run.

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Theola

9 months ago

Hmm, I'm not so sure. $300,000 for Company B is pretty close to the limit. What if there are any unexpected costs or changes down the line? I think I'd feel more comfortable with Company C, even though it's a bit higher.

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Antonio

9 months ago

You're right, Company A is way over budget. But between B and C, I think B is the better option. Their total cost is $300,000, which is right around the $310,000 mark, while C is a bit higher at $320,000.

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Rex

9 months ago

Okay, let's start with the numbers. Company A has the highest total cost at $356,000, so we can rule that out right away. That leaves us with Companies B and C.

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Lucia

7 months ago

So, both Company B and Company C are viable options for the insurance company.

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Maryann

7 months ago

Company C has a total cost of $305,000. Both are within the budget of $310,000.

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Noel

7 months ago

Company B has a total cost of $300,000. How about Company C?

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Anastacia

7 months ago

So we are left with Companies B and C. Let's compare their costs.

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Lucia

7 months ago

Company A is definitely out with such high cost.

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Luis

9 months ago

I agree, we need to look closely at the costs for each vendor. The licensing costs and implementation costs can really add up, so we have to make sure we don't go over that $310,000 limit.

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Alexia

9 months ago

This seems like a tricky question. The key is to find the vendor or vendors that fit within the $310,000 budget for the first three years. Let's go through the numbers carefully.

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