70+ BUSINESS ANALYST QUESTIONS AND ANSWERS

 

✅ Section 1: Fundamentals of Business Analytics (1–15)

1. What is the main objective of Business Analytics?
   A. Data storage
   B. Data visualization only
   C. Data-driven decision making
   D. Database management
   ✅ Answer: C
2. Which of the following is NOT a type of analytics?
   A. Descriptive
   B. Predictive
   C. Prescriptive
   D. Curative
   ✅ Answer: D
3. Which analytics type answers “What happened?”
   A. Descriptive
   B. Predictive
   C. Diagnostic
   D. Prescriptive
   ✅ Answer: A
4. Which analytics type focuses on future trends?
   A. Descriptive
   B. Predictive
   C. Diagnostic
   D. Cognitive
   ✅ Answer: B
5. Which of the following is a Business Intelligence tool?
   A. MySQL
   B. Python
   C. Power BI
   D. GitHub
   ✅ Answer: C
6. KPI stands for:
   A. Key Performance Indicator
   B. Knowledge Performance Index
   C. Key Processing Indicator
   D. Known Performance Input
   ✅ Answer: A
7. Which of the following is a structured data format?
   A. Image
   B. PDF
   C. SQL table
   D. Video
   ✅ Answer: C
8. Dashboards in analytics are used for:
   A. Writing reports
   B. Managing code
   C. Visualizing KPIs
   D. Testing APIs
   ✅ Answer: C

9. What is the first step in business analytics?
   A. Build the model
   B. Data interpretation
   C. Problem definition
   D. Deployment
   ✅ Answer: C
10. SWOT analysis helps in:
    A. Data storage
    B. Statistical modeling
    C. Strategic decision-making
    D. Time series forecasting
    ✅ Answer: C
11. Which software is commonly used for Business Analytics?
    A. AutoCAD
    B. SAP
    C. PowerPoint
    D. Tally
    ✅ Answer: B
12. Which type of analytics provides “what-if” analysis?
    A. Descriptive
    B. Predictive
    C. Diagnostic
    D. Prescriptive
    ✅ Answer: D
13. ETL stands for:
    A. Evaluate, Test, Launch
    B. Extract, Transform, Load
    C. Execute, Transfer, Link
    D. Explore, Transfer, Learn
    ✅ Answer: B
14. Which of these is a data visualization library in Python?
    A. Matplotlib
    B. NumPy
    C. Pandas
    D. Scikit-learn
    ✅ Answer: A
15. An outlier in business data refers to:
    A. A missed observation
    B. An error in system
    C. A data point that deviates significantly from others
    D. An average value
    ✅ Answer: C

✅ Section 2: Statistical Tools & Techniques (16–30)

16. Which of the following measures central tendency?
    A. Mean
    B. Variance
    C. Standard deviation
    D. Correlation
    ✅ Answer: A
17. The probability of an impossible event is:
    A. 0
    B. 1
    C. 100
    D. Undefined
    ✅ Answer: A
18. What does the p-value in hypothesis testing indicate?
    A. Model accuracy
    B. Likelihood of null being true
    C. Significance of results
    D. R-squared
    ✅ Answer: C
19. Which statistical test compares means of two groups?
    A. Chi-square test
    B. ANOVA
    C. T-test
    D. Z-test
    ✅ Answer: C
20. Standard deviation measures:
    A. Central value
    B. Data correlation
    C. Spread or dispersion of data
    D. Linearity
    ✅ Answer: C
21. Which graph is best for categorical data?
    A. Line graph
    B. Histogram
    C. Bar chart
    D. Scatter plot
    ✅ Answer: C
22. Which chart shows data distribution over intervals?
    A. Histogram
    B. Pie chart
    C. Bar graph
    D. Line chart
    ✅ Answer: A
23. Correlation ranges from:
    A. 0 to 1
    B. -1 to 1
    C. -100 to +100
    D. 0 to infinity
    ✅ Answer: B
24. What does R-squared indicate?
    A. Correlation strength
    B. Model fit to data
    C. Significance level
    D. Prediction error
    ✅ Answer: B

25. Which distribution is bell-shaped and symmetric?
    A. Normal
    B. Binomial
    C. Uniform
    D. Exponential
    ✅ Answer: A
26. In a right-skewed distribution, the mean is:
    A. Greater than median
    B. Equal to median
    C. Less than median
    D. Undefined
    ✅ Answer: A
27. What is a population in statistics?
    A. Sample subset
    B. Data file
    C. Entire group being studied
    D. Filtered records
    ✅ Answer: C
28. Which test is used for categorical variable relationships?
    A. Z-test
    B. T-test
    C. Chi-square test
    D. ANOVA
    ✅ Answer: C
29. Which method is used for forecasting trend data?
    A. Time Series
    B. Regression
    C. Classification
    D. Clustering
    ✅ Answer: A
30. Which statistic shows relationship strength between two variables?
    A. Variance
    B. Mean
    C. Correlation
    D. Skewness
    ✅ Answer: C

 

✅ Section 3: Predictive Modeling & Forecasting (31–45)

31. Which technique is best for predicting numerical values?
    A. Classification
    B. Regression
    C. Clustering
    D. Association
    ✅ Answer: B
32. Which model type is used for customer segmentation?
    A. Regression
    B. Clustering
    C. Classification
    D. Neural networks
    ✅ Answer: B
33. Decision trees are mainly used for:
    A. Forecasting time
    B. Descriptive statistics
    C. Classification and regression
    D. Dashboards
    ✅ Answer: C
34. Which of the following is a supervised learning algorithm?
    A. K-means
    B. Apriori
    C. Decision Tree
    D. PCA
    ✅ Answer: C
35. Which model helps predict binary outcomes (yes/no)?
    A. Linear regression
    B. Logistic regression
    C. Decision trees
    D. KNN
    ✅ Answer: B
36. Overfitting occurs when a model:
    A. Generalizes well
    B. Is too simple
    C. Fits training data too closely
    D. Uses fewer features
    ✅ Answer: C
37. Which evaluation metric is best for classification models?
    A. MAE
    B. RMSE
    C. Accuracy
    D. R-squared
    ✅ Answer: C
38. Which algorithm is not used for classification?
    A. Logistic Regression
    B. Random Forest
    C. K-means
    D. Naïve Bayes
    ✅ Answer: C
39. Which technique is used to reduce dimensionality?
    A. Clustering
    B. PCA
    C. Regression
    D. Decision Tree
    ✅ Answer: B
40. Which of the following is a time-series forecasting model?
    A. ARIMA
    B. Naïve Bayes
    C. Decision Tree
    D. SVM
    ✅ Answer: A
41. Which metric is used to evaluate regression models?
    A. Precision
    B. Recall
    C. RMSE
    D. Confusion Matrix
    ✅ Answer: C
42. Which of these is not a machine learning model?
    A. Linear Regression
    B. K-means
    C. SWOT
    D. Decision Tree
    ✅ Answer: C
43. Which algorithm is suitable for anomaly detection?
    A. Clustering
    B. Linear regression
    C. Logistic regression
    D. PCA
    ✅ Answer: A
44. What is the role of a confusion matrix?
    A. Identify model bias
    B. Evaluate classification performance
    C. Visualize trends
    D. Perform clustering
    ✅ Answer: B
45. Precision is defined as:
    A. TP / (TP + FP)
    B. TP / (TP + FN)
    C. TN / (TN + FP)
    D. TP / (TP + TN)
    ✅ Answer: A

 

✅ Section 4: Decision-Making & Case-Based Reasoning (46–60)

46. What is a decision support system (DSS)?
    A. A website
    B. A server-based application
    C. A system that supports business decision-making
    D. A reporting tool
    ✅ Answer: C
47. Which model helps in portfolio risk analysis?
    A. Regression
    B. Monte Carlo simulation
    C. Clustering
    D. PCA
    ✅ Answer: B
48. Business rules in analytics are often derived from:
    A. Dashboards
    B. Data mining
    C. SQL queries
    D. Data cleaning
    ✅ Answer: B
49. Case-based reasoning involves:
    A. Guessing past decisions
    B. Automating model building
    C. Reusing past solutions for new problems
    D. Cleaning data
    ✅ Answer: C

50. Which technique helps visualize cause-and-effect relationships?
    A. Histograms
    B. Fishbone diagram
    C. Pie charts
    D. Line graphs
    ✅ Answer: B
51. Which framework helps prioritize business initiatives?
    A. RACI
    B. Eisenhower Matrix
    C. BCG Matrix
    D. SWOT
    ✅ Answer: C
52. Which metric evaluates customer lifetime value?
    A. CLV
    B. NPV
    C. CAGR
    D. ROI
    ✅ Answer: A
53. Which concept helps measure customer satisfaction?
    A. KPI
    B. CLV
    C. NPS
    D. LTV
    ✅ Answer: C
54. Net Present Value (NPV) is used for:
    A. Cost tracking
    B. Long-term profitability analysis
    C. Short-term cash forecasting
    D. Customer segmentation
    ✅ Answer: B
55. Which technique is used for decision optimization?
    A. Regression
    B. Linear programming
    C. Classification
    D. Logistic regression
    ✅ Answer: B
56. Which of the following measures project efficiency?
    A. Payback period
    B. Lead conversion
    C. Net Promoter Score
    D. Funnel ratio
    ✅ Answer: A
57. What does the Pareto principle suggest?
    A. 80% of effects come from 20% of causes
    B. 50% effort gives 50% output
    C. Balanced analysis gives perfect results
    D. Random behavior produces consistent patterns
    ✅ Answer: A
58. KPI dashboards are commonly used by:
    A. Developers
    B. Sales and Marketing teams
    C. Database admins
    D. Network engineers
    ✅ Answer: B
59. Which method helps understand root cause of problems?
    A. 5 Whys
    B. Decision Tree
    C. Pie chart
    D. PCA
    ✅ Answer: A
60. Balanced Scorecard is a tool for:
    A. Machine learning
    B. Web analytics
    C. Strategic management
    D. Code optimization
    ✅ Answer: C

 

✅ Section 5: Real-World Applications & Tools (61–75)

61. CRM analytics helps in analyzing:
    A. Finance
    B. Supply chain
    C. Customer behavior
    D. HR records
    ✅ Answer: C
62. Which platform offers drag-and-drop dashboard design?
    A. Excel
    B. Python
    C. Tableau
    D. Hadoop
    ✅ Answer: C
63. What does OLAP stand for?
    A. Online Analytical Processing
    B. Offline Analytics Performance
    C. Online Application Layer
    D. Operational Learning AI Program
    ✅ Answer: A
64. Which language is widely used in business analytics scripting?
    A. HTML
    B. Java
    C. R
    D. C++
    ✅ Answer: C
65. Which tool is most commonly used for SQL-based analytics?
    A. Python
    B. PostgreSQL
    C. Tableau
    D. Excel
    ✅ Answer: B
66. Which company uses analytics for personalized shopping recommendations?
    A. FedEx
    B. Netflix
    C. Google Maps
    D. GitHub
    ✅ Answer: B
67. Which method is used in A/B testing?
    A. Experimental design
    B. Regression
    C. Classification
    D. Forecasting
    ✅ Answer: A
68. Which industry uses churn prediction extensively?
    A. Agriculture
    B. Telecom
    C. Manufacturing
    D. Mining
    ✅ Answer: B
69. What is data wrangling?
    A. Storing large data
    B. Cleaning and preparing raw data
    C. Compressing big data
    D. Querying JSON files
    ✅ Answer: B
70. A Sankey diagram is used to show:
    A. Circular flows
    B. Resource distribution
    C. Flow of data/values between nodes
    D. Time trends
    ✅ Answer: C
71. Which of these is NOT a benefit of business analytics?
    A. Cost efficiency
    B. Random sampling
    C. Better decision making
    D. Risk mitigation
    ✅ Answer: B
72. Which concept applies analytics to operations?
    A. Data warehousing
    B. Operational analytics
    C. Neural networks
    D. Image processing
    ✅ Answer: B
73. Which metric shows how many leads convert to customers?
    A. ROI
    B. CLV
    C. Conversion rate
    D. Retention score
    ✅ Answer: C
74. Which technology supports real-time analytics?
    A. Hadoop
    B. Spark
    C. Tableau
    D. Excel
    ✅ Answer: B
75. Which of the following platforms integrates dashboards and BI in the cloud?
    A. Amazon EC2
    B. Azure Synapse
    C. Power BI
    D. Notepad++
    ✅ Answer: C