CBAP Business Analyst Exam Prep

Category - Requirements Planning & Monitoring

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?
  1. Fishbone diagram
  2. Control chart
  3. Run chart
  4. Pareto chart
  5. Marginal analysis
Explanation
Answer: E - A marginal analysis finds the point at which a company no longer receives incremental revenue for its incremental investment in quality. A company should invest in quality up to the point where marginal investment is equal to marginal return.

Key Takeaway: Conducting a marginal analysis is a true value added tool. It requires substantial business knowledge and high-quality data to do this well.
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