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?

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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Barney

2 days 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

5 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

3 months ago

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

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Blondell

3 months ago

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

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Benedict

3 months ago

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

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Nan

4 months ago

A) T - The increase should be seen sooner

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Enola

5 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

5 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

4 months ago

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

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Aileen

4 months ago

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

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Lyla

4 months ago

User 1: A - The increase should be seen sooner

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Isidra

5 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

4 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

4 months ago

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

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Tiera

4 months ago

A) T - The increase should be seen sooner

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Viola

5 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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