Certification of Capability in Business Analysis (CCBA) — Question 212

A deployed loan product was funded with the expectation of prepayment risk reduction. Initially key performance indicators would be to take similar loan prepayment rates over the previous 10 year period and compare it with the new product. After implementation, the business analyst (BA) determines that the decade old housing market is vastly different. Which of the following should the BA consider for validity of performance measures?

Answer options

• A. Timing
• B. Sample size
• C. Currency
• D. Frequency

Correct answer: D

Explanation

The correct answer is D, as frequency of the data used for comparison is crucial in reflecting current market conditions. The decade-old data may not represent recent trends accurately, making it essential to consider how often the data is updated. Options A, B, and C do not directly address the relevance of the data's timing frequency in relation to changes in the housing market.