IIBA Exam CBDA Topic 2 Question 21 Discussion

Actual exam question for IIBA's CBDA exam

Question #: 21
Topic #: 2

A 3rd party is marketing an application for financial institutions to use for credit scoring. This application is an example of what type of analytics?

ADescriptive analytics

BPrescriptive analytics

CExploratory

DInferential
Explanation:
Prescriptive analytics is the type of analytics that provides recommendations or suggestions for optimal actions or decisions based on data analysis. Prescriptive analytics uses techniques such as optimization, simulation, and decision analysis to generate and evaluate various scenarios and outcomes. Prescriptive analytics can help financial institutions to use credit scoring to determine the best loan offers, interest rates, and repayment terms for their customers, as well as to manage risk and compliance. Prescriptive analytics is the most advanced and complex type of analytics, as it requires a high level of data quality, integration, and modeling, as well as human judgment and domain expertise.Reference:
Certification in Business Data Analytics (IIBA - CBDA), IIBA, accessed on January 20, 2024.
Business Data Analytics Certification - CBDA Competencies | IIBA, IIBA, accessed on January 20, 2024.
Guide to Business Data Analytics, IIBA, 2020, p. 15-16.

Show Suggested Answer

Suggested Answer: B

by Paris at Sep 19, 2024, 01:22 AM

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Malinda

2 months ago

Prescriptive analytics, eh? Sounds like it's going to tell me how to live my life... or at least how to run our credit scoring business.

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Cheryl

1 months ago

A: Exactly, it helps us make the best loan offers and manage risk effectively.

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Graham

1 months ago

B: So it's like having a personal advisor for our credit scoring decisions.

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Rosendo

2 months ago

A: Yeah, prescriptive analytics is all about giving us recommendations based on data analysis.

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Marvel

2 months ago

I'm not sure, but I think it could also be inferential analytics.

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Amie

2 months ago

Prescriptive analytics, huh? I wonder if it can also prescribe the perfect outfit for our credit analysts. That would be a real game-changer!

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Jaleesa

1 months ago

D: Inferential

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Jeanice

2 months ago

C: Exploratory

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Ettie

2 months ago

B: Prescriptive analytics

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Torie

2 months ago

A: Descriptive analytics

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Cory

2 months ago

I agree with you, prescriptive analytics provides recommendations based on data analysis.

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Buck

3 months ago

Hmm, I'm not sure if this is the right type of analytics. Doesn't it feel a bit too 'prescriptive' for our financial institution?

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Kerry

1 months ago

D: It could be, but prescriptive analytics can help us make better loan offers and manage risk.

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Valentin

2 months ago

C: But do you think it might be too 'prescriptive' for our financial institution?

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Sherly

2 months ago

B: I agree, prescriptive analytics provides recommendations for optimal actions based on data analysis.

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Altha

2 months ago

A: I think this application falls under prescriptive analytics.

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Val

3 months ago

Prescriptive analytics? That's the one that gives me recommendations, right? Sounds like exactly what we need for our credit scoring app.

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Shawna

2 months ago

Absolutely, prescriptive analytics uses techniques like optimization and simulation to generate optimal actions. It's ideal for determining loan offers and managing risk.

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Merilyn

3 months ago

Yes, prescriptive analytics provides recommendations based on data analysis. It would be perfect for our credit scoring app.

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Tiera

3 months ago

I think the application is an example of prescriptive analytics.

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