IIBA Exam CBDA Topic 1 Question 24 Discussion

Actual exam question for IIBA's CBDA exam

Question #: 24
Topic #: 1

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?

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.

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Suggested Answer: C

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

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2 months 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

1 months 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 months ago

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

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Valentine

2 months ago

I think the analyst will perform descriptive analytics.

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