IIBA CBDA Exam - 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?

AT - The increase should be seen sooner

BA - It is too easy of a target to attain

CR - Since competition is high, focus should be on increasing customer base and not on
ARPU

DS - There is no mention of which product group/line the target pertains to

Show Suggested Answer

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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Ranee

3 months ago

Sounds like an easy target, but is it realistic?

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Chau

3 months ago

I think they should focus on customer retention instead.

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Ariel

4 months ago

5% increase? Seems ambitious in a tough market.

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Chaya

4 months ago

Totally agree, without that info, it’s vague!

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Vallie

4 months ago

They need to specify the product line for clarity.

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Milly

4 months ago

I believe the target is lacking in terms of measurability. They should specify how they plan to track the increase in ARPU.

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Oliva

5 months ago

I'm not entirely sure, but I feel like they should also consider the competitive landscape more. Focusing solely on ARPU might not be enough.

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Lera

5 months ago

I remember a practice question that emphasized the importance of specificity in targets. Maybe they need to clarify which product line this applies to?

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Alberto

5 months ago

I think the target might be missing a specific timeframe for achieving that 5% increase. It seems vague.

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Tequila

5 months ago

Good point, Amber. The "S" could also be an issue if the target doesn't specify which product group or line the ARPU increase is for.

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Amber

5 months ago

I'd say the missing piece is the "R" in SMART - the Relevance. Since the market is highly competitive, the focus should be on increasing the customer base, not just ARPU.

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Brunilda

5 months ago

I'm a bit confused on this one. Is the issue that the target is not time-bound enough? Or is it that the goal is too easy to achieve?

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Marshall

5 months ago

Okay, let's see. The target is to increase ARPU by 5% by the end of the year, which seems specific and measurable. But you're right, there could be more details needed.

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Barney

5 months ago

Hmm, this seems straightforward. I think the key is to identify what's missing from the SMART target perspective.

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Rodney

10 months 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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Lorrine

8 months ago

D) S - There is no mention of which product group/line the target pertains to

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Blondell

8 months ago

C) R - Since competition is high, focus should be on increasing customer base and not on ARPU

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Benedict

8 months ago

B) A - It is too easy of a target to attain

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Nan

9 months ago

A) T - The increase should be seen sooner

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Enola

10 months 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

10 months ago

Haha, B is too easy? I wish all my targets were that easy! Sign me up for that job!

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Jaleesa

9 months ago

User 3: D - We need to know which product group this target is for

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Aileen

9 months ago

User 2: Aileen is right, we need to see results faster

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Lyla

9 months ago

User 1: A - The increase should be seen sooner

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Isidra

10 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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Tuyet

9 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

9 months ago

C) R - Since competition is high, focus should be on increasing customer base and not on ARPU

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Tiera

9 months ago

A) T - The increase should be seen sooner

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Viola

10 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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