DA Business Intelligence and KPIs

Question 1

What does KPI stand for?

Accepted Answer

Key Performance Indicator

Answer

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?

Accepted Answer

A visual display of key metrics and KPIs for monitoring performance

Answer

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?

Accepted Answer

The percentage of customers who stop using a product or service in a period

Answer

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?

Accepted Answer

The total revenue a business expects from a customer over their relationship

Answer

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?

Accepted Answer

Tracking user progression through a series of steps toward a goal

Answer

Funnel analysis shows how users move through sequential steps (e.g., visit → sign up → purchase) and where they drop off.

DA - Data Analyst Practice Test