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CCBA · Question #434

An organization is planning to launch an exciting new service that has never been offered before. The expectations are that the service will be extremely popular with young families but, because the o

The correct answer is C. To manage the associated risks. An assumption is an influencing factor that is believed to be true but has not been confirmed to be accurate or that could be true now but may not be in the future1. The BA suggests identifying high customer demand by young families as an assumption because it is a factor that in

Strategy Analysis

Question

An organization is planning to launch an exciting new service that has never been offered before. The expectations are that the service will be extremely popular with young families but, because the organization wants to keep it a secret until launch day. there is no way of knowing whether this is correct. Why does the business analyst (BA) suggest identifying high customer demand by young families as an "assumption?

Options

  • ATo assess the costs and benefits accurately
  • BTo prove the idea is correct
  • CTo manage the associated risks
  • DTo provide a benchmark future change

How the community answered

(24 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    79% (19)
  • D
    13% (3)

Explanation

An assumption is an influencing factor that is believed to be true but has not been confirmed to be accurate or that could be true now but may not be in the future1. The BA suggests identifying high customer demand by young families as an assumption because it is a factor that influences the business case and the solution design, but it is not based on any evidence or data. By identifying this assumption, the BA can manage the associated risks, such as the possibility of low customer demand, customer dissatisfaction, or market competition. The BA can also plan to validate or update this assumption as more information becomes available or as the market conditions change. The other options are not the main reasons for identifying assumptions, as they are either outcomes or activities that depend on the assumptions.

Topics

#assumptions#risk management#customer demand#new service launch

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