Mixed Deck — All CDP Topics Flashcards

Which messaging standard is most commonly used to ensure interoperability between healthcare information systems?

Answer: HL7

HL7 (Health Level 7) is the dominant standard for exchanging clinical and administrative data between healthcare applications and systems.

What is the purpose of a Business Glossary in data governance?

Answer: Provide standardized business term definitions used across the enterprise

A Business Glossary provides a common vocabulary with standardized definitions to ensure consistent communication across business units.

Which regulatory framework requires financial institutions to report derivative positions to a trade repository?

Answer: Dodd-Frank Act (CFTC reporting)

The Dodd-Frank Wall Street Reform Act mandated reporting of over-the-counter derivative transactions to CFTC-registered trade repositories.

Which metric best measures how efficiently a company uses assets to generate profit?

Answer: Return on Assets (ROA)

ROA = Net Income / Total Assets, directly measuring how much profit is generated per dollar of assets.

What does the P/E ratio measure in equity financial data?

Answer: Price per share relative to earnings per share

The Price-to-Earnings ratio divides a stock's current share price by its earnings per share to indicate valuation.

In portfolio analytics, what does 'alpha' represent?

Answer: Excess return of an investment relative to a benchmark index

Alpha measures the active return on an investment above or below a benchmark, representing the value added by the portfolio manager.

What is database normalization's Third Normal Form (3NF) requirement?

Answer: No transitive dependencies — non-key attributes must depend only on the primary key, not on other non-key attributes

3NF requires that non-key attributes depend only on the primary key (not on other non-key attributes), eliminating transitive dependencies that cause update anomalies.

What is 'data provenance'?

Answer: The documented history of data's origin and transformations over its lifecycle

Data provenance documents the origin, custody, and transformations of data throughout its lifecycle to ensure trustworthiness and traceability.

When normalizing financial data across multiple companies, which challenge is most commonly encountered?

Answer: Differences in fiscal year end dates and accounting policies

Companies adopt different fiscal year calendars and accounting policy choices (e.g., depreciation methods), requiring normalization before comparison.

A data analyst notices that a company's balance sheet does not balance. Which accounting identity should hold true?

Answer: Assets = Liabilities + Equity

The fundamental accounting equation states that Assets must equal Liabilities plus Shareholders' Equity.

What is the purpose of a 'reference data' table in a database?

Answer: Provide a controlled set of valid values for data fields, such as country codes or status types

Reference data tables store stable, controlled sets of valid values (like country codes, currency codes, or status enumerations) used to ensure data consistency.

What is a 'junk dimension' in dimensional modeling?

Answer: A single dimension table that consolidates miscellaneous, low-cardinality flag and indicator fields from the fact table

A junk dimension consolidates miscellaneous boolean flags and low-cardinality indicators into a single dimension table to reduce fact table width.

Which approach is most effective for sustaining long-term data quality improvements?

Answer: Embedding data quality rules into data entry and integration processes to prevent defects

Embedding quality checks and rules into processes at the point of entry or transformation prevents defects from occurring, creating sustainable quality improvements.

What is the role of metadata in data governance?

Answer: It provides context and information about data assets to aid in discovery and management

Metadata provides context about data assets—such as structure, origin, and usage—enabling better discovery, understanding, and management of data.

Which concept refers to a single, authoritative definition of a business term used consistently across an organization?

Answer: Data Dictionary

A Data Dictionary provides authoritative definitions of business terms and data elements to ensure consistent understanding across the enterprise.

The difference between a collection of data's top and lowest scores. Answer: Range

Answer: TRUE

In statistics, the range refers to the difference between the highest and lowest values in a set of data. It provides a measure of the spread or variability of the data. To calculate the range, you subtract the lowest value from the highest value in the dataset.

Which BI concept refers to the ability to analyze data from multiple perspectives simultaneously?

Answer: Pivot / Cross-tab Analysis

Pivot or cross-tabulation analysis allows users to analyze data from multiple dimensions simultaneously, rotating the view to see measures from different perspectives.

Which Hadoop component is responsible for storing job history and providing a REST API to query completed MapReduce jobs?

Answer: JobHistoryServer

The JobHistoryServer retains logs and metrics for completed MapReduce jobs and exposes them via a web UI and REST API.

A CDP professional is asked to calculate 'Days Sales Outstanding (DSO)'. Which formula is correct?

Answer: (Accounts Receivable / Net Credit Sales) × Number of Days

DSO measures the average number of days a company takes to collect payment after a sale, calculated as AR divided by daily credit sales.

What is 'record linkage' (also called entity resolution)?

Answer: The process of identifying records across datasets that refer to the same real-world entity

Record linkage identifies records from different datasets that represent the same real-world entity, enabling deduplication and data integration.