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IIBA Exam CBDA Topic 1 Question 7 Discussion

Actual exam question for IIBA's CBDA exam
Question #: 7
Topic #: 1
[All CBDA Questions]

Based on the results of a recently completed analytics initiative, the Human Resource department for a major department store implemented a change to its hiring practice to address the attrition rates of its sales associates. The new policy stated that candidates applying for sales positions must possess at least 3 years of relevant sales experience to be considered. After implementing the change, attrition rates are 10% higher and management is frustrated. Which of the following could result in this outcome?

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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.


Contribute your Thoughts:

Terrilyn
19 hours ago
Maybe the requirement for 3 years of sales experience is too high.
upvoted 0 times
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Olga
3 days ago
I think the new policy might be too strict.
upvoted 0 times
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