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Practice CPA®CPA BAR Practice ExamQuestion 39

Easy1 markMultiple Choice

Area 4: Data AnalyticsData AnalyticsTypes of Analytics

CPA · Question 39 · Area 4: Data Analytics

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

Diagnostic analytics focuses on understanding the root causes of past events.

Common mistakes

Confusing Diagnostic (Why) with Descriptive (What).

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