DA0-001 Question #324: Real Exam Question with Answer & Explanation

The correct answer is B: Trend analysis. To check the progress and performance of customer numbers over the last six years, an analyst should perform trend analysis. This type of analysis examines historical data to identify patterns, directions, and changes over time, helping to forecast future performance.

Data Analysis

Question

An analyst wants to check the progress and performance regarding the number of customers an organization served in the last six years. Which of the following represents the type of analysis the analyst should perform?

Options

ACorrelation analysis
BTrend analysis
CRegression analysis
DDescriptive analysis

Explanation

To check the progress and performance of customer numbers over the last six years, an analyst should perform trend analysis. This type of analysis examines historical data to identify patterns, directions, and changes over time, helping to forecast future performance.

Common mistakes.

A. Correlation analysis measures the strength and direction of a linear relationship between two variables, not the progression of a single variable over time.
C. Regression analysis models the relationship between a dependent variable and one or more independent variables, primarily for prediction or forecasting based on other factors, not simply observing a single variable's change over time for progress.
D. Descriptive analysis summarizes the main characteristics of a dataset (e.g., mean, median, standard deviation) but does not specifically focus on examining changes or patterns over a time series to assess progress.

Concept tested. Time series analysis - Trend analysis

Reference. https://learn.microsoft.com/power-bi/transform-model/desktop-analysis-overview#trend-analysis

Topics

#Trend analysis#Data analysis types#Performance tracking

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