DA Business Intelligence and KPIs 1 — Questions and Answers
Question 1: What does KPI stand for?
- Key Performance Indicator (Correct answer)
- Key Process Integration
- Knowledge and Performance Index
- Key Productivity Insight
Correct answer: Key Performance Indicator
KPI stands for Key Performance Indicator, a measurable value that shows how effectively an organization is achieving its objectives.
Question 2: What is a dashboard in Business Intelligence?
- A raw data export file
- A visual display of key metrics and KPIs for monitoring performance (Correct answer)
- A database schema diagram
- A data governance policy document
Correct answer: A visual display of key metrics and KPIs for monitoring performance
A BI dashboard consolidates key metrics into a single visual interface, allowing stakeholders to monitor performance at a glance.
Question 3: What is churn rate?
- The rate at which new customers are acquired
- The percentage of customers who stop using a product or service in a period (Correct answer)
- The revenue generated per customer
- The number of support tickets opened monthly
Correct answer: The percentage of customers who stop using a product or service in a period
Churn rate measures the proportion of customers who discontinue a service within a given time frame.
Question 4: What does Customer Lifetime Value (CLV) measure?
- The age of a customer relationship
- The total revenue a business expects from a customer over their relationship (Correct answer)
- The cost to acquire a new customer
- The number of purchases made in one month
Correct answer: The total revenue a business expects from a customer over their relationship
CLV estimates the total net revenue a customer will generate throughout their relationship with a business.
Question 5: What is the purpose of a funnel analysis in business intelligence?
- Visualizing geographic sales data
- Tracking user progression through a series of steps toward a goal (Correct answer)
- Comparing monthly revenue totals
- Identifying data entry errors
Correct answer: Tracking user progression through a series of steps toward a goal
Funnel analysis shows how users move through sequential steps (e.g., visit → sign up → purchase) and where they drop off.
Question 6: What is a leading indicator?
- A metric that reflects past performance
- A forward-looking metric that predicts future outcomes (Correct answer)
- A KPI measured on a monthly basis
- A ratio comparing two revenue streams
Correct answer: A forward-looking metric that predicts future outcomes
Leading indicators are predictive metrics that signal future performance, allowing proactive action before outcomes occur.
DA Business Intelligence and KPIs 1
What does KPI stand for?