CBAP · Question #261
Gina has been asked to provide decision analysis for her solution scope. Which one of the following best describes the decision analysis technique?
The correct answer is D. Cost-benefit analysis compares the cost of implementing a solution against the benefits. Decision analysis in business analysis centers on evaluating solution options by comparing costs against expected benefits to support sound decision-making.
Question
Gina has been asked to provide decision analysis for her solution scope. Which one of the following best describes the decision analysis technique?
Options
- AAssessed to support benefit management, measurement, and reporting.
- BUsed to assess potential risks that may impact the solution and the cost and benefits
- CForecasts the size of the investment required to deploy and operate the proposed solution.
- DCost-benefit analysis compares the cost of implementing a solution against the benefits
How the community answered
(27 responses)- A4% (1)
- B15% (4)
- C7% (2)
- D74% (20)
Why each option
Decision analysis in business analysis centers on evaluating solution options by comparing costs against expected benefits to support sound decision-making.
Supporting benefit management and measurement describes a performance measurement or benefits realization activity, not a decision analysis technique.
Assessing risks and their cost-benefit implications describes risk analysis, which is a separate technique from decision analysis.
Forecasting the investment required to deploy a solution describes cost estimation or return-on-investment analysis, not decision analysis itself.
Cost-benefit analysis is the foundational decision analysis technique that quantifies the financial trade-offs of a proposed solution by weighing implementation and operational costs against projected benefits. It enables stakeholders to make an informed choice about whether and how to proceed with a solution. This direct comparison of costs and benefits is the defining characteristic of decision analysis in the business analysis context.
Concept tested: Decision analysis technique in business analysis
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