Easy1 markMultiple Choice
CPA · Question 39 · Area 4: Data Analytics
Which of the following is a 'Diagnostic' analytics question?
Which of the following is a 'Diagnostic' analytics question?
Answer options:
A.
What happened last quarter?
B.
Why did sales drop in the Northeast region?
C.
What will sales be next quarter?
D.
How can we increase sales next quarter?
How to approach this question
Descriptive = What? Diagnostic = Why? Predictive = What will? Prescriptive = How do we make it happen?
Full Answer
B.Why did sales drop in the Northeast region?✓ Correct
B
Diagnostic analytics focuses on understanding the root causes of past events.
Common mistakes
Confusing Diagnostic (Why) with Descriptive (What).
Practice the full CPA BAR Practice Exam
50 questions · hints · full answers · grading
More questions from this exam
Q01TechGlobal Inc. is evaluating the performance of its European division using Economic Value Added...HardQ02A manufacturing company is analyzing its production process to identify bottlenecks. The process ...MediumQ03Management is using the COSO Enterprise Risk Management (ERM) framework to address a newly identi...MediumQ04RetailCo is evaluating two strategic initiatives using a Balanced Scorecard approach. <br/>Initia...MediumQ05A company is deciding between two mutually exclusive projects. <br/>Project X: NPV = $50,000, IRR...Medium
Expert