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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.

Solution Evaluation

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)
  • A
    4% (1)
  • B
    15% (4)
  • C
    7% (2)
  • D
    74% (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.

AAssessed to support benefit management, measurement, and reporting.

Supporting benefit management and measurement describes a performance measurement or benefits realization activity, not a decision analysis technique.

BUsed to assess potential risks that may impact the solution and the cost and benefits

Assessing risks and their cost-benefit implications describes risk analysis, which is a separate technique from decision analysis.

CForecasts the size of the investment required to deploy and operate the proposed solution.

Forecasting the investment required to deploy a solution describes cost estimation or return-on-investment analysis, not decision analysis itself.

DCost-benefit analysis compares the cost of implementing a solution against the benefitsCorrect

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

Topics

#decision analysis#cost-benefit analysis#solution evaluation techniques

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