IDBA Practice Questions
Prepare for IDBA with more than an answer.
- Level
- Diploma (Professional Level)
- Valid for
- No expiry stated (lifetime certification)
Domains covered on the exam 5
- Business Analysis Practice (Core Module)25%
- Requirements Engineering (Core Module)25%
- Knowledge-Based Module (Choose One)20%
- Practitioner Module (Choose One)15%
- Oral Examination (Synthesis and Application)15%
- 1
A business analyst is preparing the financial appraisal for a Business Case. An IT automation project requires an initial capital investment of £100,000 in Year 0. It is projected to generate net cash flows of £40,000 in Year 1, £50,000 in Year 2, and £40,000 in Year 3. Assuming a discount rate of 10%, which of the following is the correct approach to calculate the Net Present Value (NPV) at the end of Year 3?
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Correct answer: D
The formula for Discounted Cash Flow (DCF) to calculate NPV requires dividing the future cash flow by (1 + discount rate) raised to the power of the year. Therefore, Year 1 is divided by 1.1^1, Year 2 by 1.1^2, and Year 3 by 1.1^3, subtracting the initial Year 0 outlay.
- 2
During a stakeholder analysis session, a business analyst plots a regulatory compliance officer on the Power/Interest Grid. The officer has the authority to halt the project if legal standards are not met, but they have very little day-to-day interest in the operational features of the software being built. According to the grid, what is the appropriate management strategy for this stakeholder?
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Correct answer: B
A stakeholder with high power (can halt the project) but low interest (not concerned with daily features) falls into the 'Keep Satisfied' quadrant. They should be managed to ensure their specific requirements (compliance) are met so they do not use their power negatively.
- 3
A multinational retail bank is planning to enter a new geographical market. The business analyst has been asked to evaluate the macro-environmental factors that could impact this strategic move, specifically focusing on incoming legislative changes, demographic shifts in the target country, and emerging fintech disruptions. Which technique is the MOST appropriate for this specific analysis?
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Correct answer: D
PESTLE analysis evaluates Political, Economic, Socio-cultural, Technological, Legal, and Environmental factors. The scenario specifically mentions legislative changes (Legal), demographic shifts (Socio-cultural), and fintech disruptions (Technological), making PESTLE the optimal framework for macro-environmental analysis.
- 4
A university is initiating a transformation programme to overhaul its student management system. The business analyst is conducting a CATWOE analysis to understand different stakeholder perspectives. The faculty's perspective is: 'A system to reduce administrative burden so that we can focus more time on teaching and research.' In the context of CATWOE, which TWO elements does this statement primarily represent? (Select TWO)
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Correct answer: B, D
The statement reveals the faculty's underlying belief or worldview (Weltanschauung) that their primary purpose is teaching and research, and the system's purpose is to facilitate that. It also defines the core transformation (T) they expect: changing high administrative burden to low administrative burden.
The statement reveals the faculty's underlying belief or worldview (Weltanschauung) that their primary purpose is teaching and research, and the system's purpose is to facilitate that. It also defines the core transformation (T) they expect: changing high administrative burden to low administrative burden.
