DA Business Intelligence and KPIs 3

Question 1

What is A/B testing in a business context?

Accepted Answer

Randomly splitting users to compare two versions of a product or campaign

Answer

A/B testing exposes different user groups to two variants and measures which performs better on a defined metric.

Question 2

What does YoY mean in financial reporting?

Accepted Answer

Year-over-Year — comparing a metric to the same period last year

Answer

Year-over-Year (YoY) compares a metric in the current period to the same period in the prior year to track growth trends.

Question 3

What is a balanced scorecard?

Accepted Answer

A strategic performance management framework with four perspectives

Answer

The balanced scorecard measures organizational performance across financial, customer, internal process, and learning & growth perspectives.

Question 4

What does 'conversion rate' measure?

Accepted Answer

The percentage of users who complete a desired action

Answer

Conversion rate is the proportion of users who take a target action (e.g., purchase, sign-up) out of total visitors or prospects.

Question 5

What is a data-driven decision?

Accepted Answer

A decision based on analysis of relevant data rather than intuition alone

Answer

A data-driven decision uses empirical evidence and analysis to guide choices, reducing reliance on guesswork or bias.

DA - Data Analyst Practice Test