A colleague proposes measuring job satisfaction by asking the question "What is your salary?".What is the concerning factor about this question?
Answer(s): A
Validity is the extent to which a measure or a question accurately captures the intended concept or construct1. The question "What is your salary?" is not a valid measure of job satisfaction, as it does not reflect the various aspects of job satisfaction, such as work environment, recognition, autonomy, growth, etc. Salary is only one possible factor that may influence job satisfaction, but it is not a direct or comprehensive indicator of it23. Therefore, the question is not valid for measuring job satisfaction.
1: Guide to Business Data Analytics, IIBA, 2020, p. 302: Job Satisfaction:Application, Assessment, Causes, and Consequences, Paul E. Spector, 1997, p. 23: Job Satisfaction Survey, 1.
A marketing director has asked the question 'How many product purchases are expected this coming year given the current marketing campaign?".What type of analytics would be performed to answer this question?
Answer(s): B
Predictive analytics is a type of analytics that uses historical and current data, as well as statistical and machine learning techniques, to forecast future events or outcomes, such as product purchases, customer behavior, or market trends12. To answer the question `How many product purchases are expected this coming year given the current marketing campaign?', predictive analytics would be performed to estimate the demand and sales based on the existing data and the marketing campaign variables.
1: Guide to Business Data Analytics, IIBA, 2020, p. 182: Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die, Eric Siegel, 2016, p. 3.
An insurance company has seen an upward trend in winter-related accidents over the past three years. The company has just completed an analytics study to better understand the primary reasons for these accidents and assess how many of the drivers were using winter tires. This analysis will help the company decide how to move forward with drivers not taking precautionary measures during winter.What type of analysis will help in determining the primary reasons and percentage of those drivers with winter tires?
Answer(s): D
Descriptive analytics is a type of analytics that summarizes and visualizes the data to provide an overview of what has happened or is happening, such as the trend of winter-related accidents over the past three years, or the percentage of drivers using winter tires12. Diagnostic analytics is a type of analytics that explores and analyzes the data to understand why something has happened or is happening, such as the primary reasons for these accidents, or the factors that influence the drivers' decisions13. To answer the question, both descriptive and diagnostic analytics would be needed to provide the relevant information and insights for the company.
1: Guide to Business Data Analytics, IIBA, 2020, p. 182: Business Analytics: Data Analysis & Decision Making, S. ChristianAlbright and Wayne L. Winston, 2015, p. 53: Data Science for Business, Foster Provost and Tom Fawcett, 2013, p. 13.
A Human Resource manager recently learned that their competitor reduced employee attrition rates by 20% after implementing personality tests as part of their screening process. Intrigued by the idea, the manager suggests collecting data on personality tests and attrition rates over the next year. The data from this year is then analyzed to explore possible relationships.What type of analytics has the team been asked to perform?
Descriptive analytics is a type of analytics that summarizes and visualizes the data to provide an overview of what has happened or is happening, such as the attrition rates and the personality test scores of the employees12. The team has been asked to perform descriptive analytics to explore possible relationships between the data variables, without making any predictions or prescriptions for the future.
1: Guide to Business Data Analytics, IIBA, 2020, p. 182: Business Analytics:Data Analysis & Decision Making, S. Christian Albright and Wayne L. Winston, 2015, p. 5.
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?
A SMART target is one that is specific, measurable, achievable, relevant, and time-bound1. The target of increasing the Average Revenue Per User (ARPU) per month by 5%, by end of year, to increase revenue in a highly competitive market is missing the specificity criterion, as it does not mention which product group or line the target applies to. The target should be more specific and clear about the scope and context of the desired outcome, such as which segment, region, or service the target relates to23.
1: Guide to Business Data Analytics, IIBA, 2020, p. 192: SMART Goals: How to Make Your Goals Achievable, MindTools, 2021, 13: How to Set SMART Marketing Goals, CoSchedule, 2021, 2.
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