Top 60 Business Analyst Interview Questions and Answers in 2021

Are you in search of Business Analyst Interview Questions and Answers? Do you have a Business Analyst interview scheduled? Then you are on the right page. We have noted the most frequently asked Business Interview Questions and Answers. Please go through the entire blog. 

First, What is a Business Analyst? In simple terms, a Business Analyst can be defined as a person who analyses the Business or organization domain and who documents the business processes, assess the business model, and integrate it with the technology. They basically guide the business to improve its services, products, and software through data analysis.

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Top 60 Business Analyst Interview Questions and Answers

1. What is Business Model Analysis?

Analyzing a Business model can help us to determine whether a venture is viable or not. A business model is defined as the logical representation of the business components or building blocks that can be dissipated on a single page. The basics of every successful organization lie in analyzing an existing business model.

2. Name the different tools used in Business Analytics?

  1. SAS Business Analytics (SAS BA): It is high-grade text analytics that allows the user to inspect and transform the unorganized text or data into relevant information.
  2. QlikView: It is the most preferred software. Its unique features include parental technology and in-memory processing.
  3. Board: It is a top-rated business analysis software tool. It allows the user to create interactive reports and dashboards.
  4. Splunk: It is the most widely used business analytic tool for small-scale and medium-scale industries.
  5. Sisense: It is the most popular business analytic tool that is incorporated with robust and dynamic text analysis functionalities.
  6. Microstrategy: This business analytic tool allows hassle-free processing of unstructured data or information.
  7. KNIME: It is rated as the best high-performance business analytic tool. Its unique features include a data-pipelining approach, and it facilitates machine learning and data mining.
  8. Dundas BI: Using the R-programming language, it offers business intelligence solutions and first-class business analytics.
  9. TIBCO Spotfire: It is one of the most advanced software for business analytics. It provides powerful and automated analytic solutions.
  10.  Tableau Big Data Analytics: It is considered the best business analytic tool that has dynamic and cutting edge capabilities for unstructured data analysis.

3. Can you tell us about Business Analytic tools?

Business analytic tools are referred to as tools that have a variety of application software and are used by the business to capture quantitative and qualitative data from different systems and incorporate them into the repository so that the decision-making can be done in a smart way.

4. Explain the Agile Manifesto?

The Agile manifesto can be defined as a document that sets the key values and principles that are behind the agile philosophy. It helps the development teams to work sustainably and more efficiently. The values and principles are called “ The Manifesto for Agile development.” The agile manifesto was published in the year 2001.

5. Explain Requirement Prioritization?

Requirement prioritization is mainly used in software product management, and it helps in determining the candidate requirements of a software product that includes certain releases.

Here, the requirements are prioritized in order to minimize the risk during the development process so that the high-risk requirements are implemented first.

Business Analyst Interview Questions and Answers

6. Can you explain the techniques used for Requirement Prioritization?

The list of Requirement Prioritization techniques are listed below:

  1. Ranking: You have to rank the requirements on an ordinary scale so that each numerical value you give is based on importance. For example, if you assign a number 1, then it means that the requirement is very important, and you have to implement it first. This method works best when you deal with a single stakeholder.
  2. Numerical Assignment: Based on the grouping requirements into different priority groups in such a way that each group represents something that a stakeholder can relate to. We can group the requirements into moderate priority, optional priority, and critical priority. 
  3. Moscow Technique: It allows the stakeholders to prioritize the requirements in a collaborative manner. It has four groups, namely MUST have, SHOULD have, COULD, and WOULD. The acronym stands for

MUST (Mandatory)

SHOULD (Of high priority)

COULD (Preferred but not necessary)

WOULD (Can be postponed and suggested for future execution)

  1. Bubble Sort Technique: In this technique, you take two requirements and compare them, and if you find that one requirement should have given a greater priority than the other, then you swap them.
  2. Hundred Dollar Method: It is used with multiple stakeholders, where they have to vote for the requirement, which is most important dramatically. Here all the stakeholders get conceptual 100 dollars. Later they can distribute among the requirements. 
  3. Analytic Hierarchy Process (AHP): This method was designed by Thomas l.Saaty. It works on the entire framework to make correct decisions in fields like business, government, healthcare, and many other sectors. Here the stakeholder divides the goals into smaller sub-problems so that they can be easily solved.
  4. Five Whys: Sometimes, a stakeholder may want to implement certain features that are not founded on logical grounds, then with the FIVE WHys, the analyst can ask the stakeholders repeatedly about the requirement until the importance of the requirement is known.

7. Can you list some of the skills and tools used by Business Analysts?

Some of the Business Analyst skills are listed below:

  1. They should have oral and written communication skills.
  2. They should have knowledge of the business structure.
  3. Good organizational skills.
  4. Good facilitation skills.
  5. They should possess some interpersonal and consultative skills.
  6. Problem-solving and analytical thinking.
  7. Stakeholder analysis.
  8. Good technical skills.
  9. They should be capable of delivering a high-level accuracy.

8. Explain the Business Analyst’s job description?

The Business analysts job description includes the following:

  1. It includes creating a detailed business analysis, outlining the problems, solutions, and opportunities for a business
  2. Budgeting and forecasting
  3. It includes the planning and monitoring
  4. Variance analysis
  5. Pricing
  6. Reporting
  7. It includes defining business requirements and reporting them back to the stakeholders.

9. What is Process design?

Process design can be defined as the act of transforming the organization’s goals, vision, and all the available resources into measurable means of achieving the organization’s goals and vision. It focuses on defining the organizations’ will to achieve its financial and other goals.

10. Can you explain the term Increment?

The increment can be defined as the sum of all the product backlog items that are completed in a sprint. The new incremented value includes the previous sprints increments.

Common Business Analyst Interview Questions and Answers

11. Can you name the four key phases of business development?

The four key phases of business development are:

  1. Forming
  2. Storming
  3. Norming
  4. Performing

12. Name the different types of Agile Methodologies?

The different types of Agile Methodologies are listed below:

  1. Scrum
  2. Lean software development and Extreme Programming (XP)
  3. Feature-driven development (FDD)
  4. Crystal Methodology
  5. DSDM (Dynamic Software Development Method)
  6. Kanban

13. Explain the difference between Business Analysis and Business Analytics?

Business AnalysisBusiness Analytics
It is a subset of Business analytics that refers to a specific action.It is a broad field to make business decisions using tools and data.
It recognizes the business needs and gives solutions to the problems.It handles and analyzes the data.
It uses tools like MOST, FIVE WHY, SWOT, PESTEL.Tools like Big data are used for this purpose.

14. Can you explain about Kanban?

Kanban can be defined as a workflow management method that is used for improving, defining, and managing services that deliver knowledgeable work.  It helps us to maximize efficiency, visualize the work, and improve continuously. It is one of the lean tools that is designed to reduce idle time and increase productivity.

15. Name some of the most important Agile metrics?

The important Agile metrics are mentioned below:

  1. Velocity: It tracks the project progress.
  2. Sprint Burndown report:  It is used for tacking the completion of various tasks during a sprint. The agile framework organizes the process into sprints.
  3. Epic and Release Burndown: It tracks the progress over a large work body. The workflow in the epic and version is made simple with Epica and Release Burndown.
  4. Control Chart: It focuses on the duration of time from “In progress” to “ complete” status of the tasks.
  5. Cumulative Flow Diagram: It ensures consistency in the workflow throughout the team. It is represented in the form of a graph, where the X-axis represents the time, and the Y-axis represents the number of issues. 
  6. Lead time: It is the period between the moments of making a decision for product delivery and the actual delivery.
  7. Value delivered: It is represented in the form of a graph, high-value features should be given top priority, the upward trend shows that things are in the right place, and the downward trend metric specifies that it is not a good sign.
  8. Net promoter score: It measures the willingness of the customers to recommend the services or the products to others.
  9. Work item age: It specifies the time that passes between the start phase and completion phase of the task.
  10. Throughput: It measures the average tasks that are processed in each time unit.
  11. Blocked time: This metric is used to assign a blocker sticker to a task, which means that the assignee cannot process the task due to some reasons because of some dependency.
  12. Escaped Defects: This metric helps in the bug identification during the production process.
  13. Failed deployments: This metric assists the number of overall deployments.

Business Analyst Interview Questions and Answers

16. Can you tell us when to use the Waterfall model instead of Scrum?

You should opt for the Waterfall model instead of Scrum when the requirement is simple and specific.

17. Can you differentiate between Incremental and Iterative Development?

Incremental DevelopmentIterative Development
It divides the work into small bite-sized pieces.It is the process of repeating the cycle of work.
Here, it follows the product implementation, designing, and testing incrementally till the product is finished.Here, the development happens without interruption.

18. Can you explain the Requirement Elicitation Strategy?

It is a process of collecting the requirements that are related to the system from the customers, end-users, and stakeholders. According to the BABOK book, we have nine methods that are used as a part of the requirement elicitation strategy, namely,

  1. Prototyping
  2. Brainstorming
  3. Survey
  4. Interview
  5. Interface analysis
  6. Observation
  7. Requirement workshops
  8. Document analysis
  9. Focus groups

19. What is the BPMN gateway? What are its elements?

BPMN gateway can be used for controlling the flow of interaction and the sequence of processes. Basically, they are diagrams with a set of graphical elements.

We have four elements in the BPMN gateway, namely,

  1. Flow objects
  2. Data connections
  3. Swimlanes
  4. Articrafts.

20. Can you differentiate between BRD and SRS in Business Analysis?

Business Requirement DocumentSystem Requirements Specification
It derives from the client requirement.It derives from BRS after the client engagement.
It is a high-level functional specification of software.It is a technical specification of software.
These are created by Business Analysts after the client interaction.It is created by system architects with the help of technical expertise.

Top Business Analyst Interview Questions and Answers

21. What role does a Business Analyst play in an organization?

  1. The Business analyst has to communicate with the different and difficult stakeholders of the organization.
  2. The Business analyst should be capable of fulfilling the business objectives.
  3. They have to balance the needs of different stakeholders.

22. Explain the term Invest?

Invest can be abbreviated as Independent, Negotiable, Valuable, Estimable, Sized, and Testable. This term is mainly used by Project managers and Business Analysts to deliver quality products and services.

23. Explain the SWOT technique?

SWOT is abbreviated as Strengths, Weaknesses, Opportunities, and Threats is the most widely used technique in organizations or companies for proper resource allocation. A business analyst should identify the strengths and weaknesses of any organization and convert them into opportunities and threats.

24. Explain MoSCoW?

MoSCow(Must or Should, Could, or Would) is implemented by the Business Analysts to compare the requirements and prioritize the requirements based on the urgency.

25. What are UML and state its uses?

The Unified Modeling Language is defined as a general-purpose, developmental modeling language that provides a standardized way to envision the system. It rationalizes the system behavior for elimination and detection of errors.

Business Analyst Interview Questions

Business Analyst Interview Questions and Answers

26. Explain the term Requirement?

A Requirement can be defined as a targeted solution and representation to achieve the specified business objectives. The stakeholders make the project evaluation based on the conditions or requirements before it is implemented. Here the elements are documented correctly for future reference.

27. Can you briefly explain Business Modelling?

Business Modelling can be defined as a step-by-step approach to identify the value proposition for the successful operation of the business.

Some of the key attributes of business modeling are listed below:

  1. Vision
  2. Mission
  3. Objectives
  4. Strategies
  5. Action plan

28. Explain Gap Analysis and the types of gaps that occur during the analysis?

Gap Analysis can be defined as the analysis of functional differences between the existing and the targeted system. Gap Indicates the changes required to accomplish the proposed result.

The different types of gaps are:

  1. Profit Gap: It indicates the changes between the actual and estimated profit of an organization.
  2. ManPower Gap: It specifies the changes between the actual and required workforce or manpower strength in a company.
  3. Performance gap: It indicates the differences between the actual and expected performance.
  4. Market gap: It specifies the variation between estimated and actual sales.

29. Why does a business analyst need a document? Can you name a few documents that you have previously worked on?

A project life cycle makes use of many documents depending on the utilization process of the Business analysts.

The following are the documents:

  1. Gap Analysis Document
  2. Initiation Document
  3. Change Request Document
  4. System Requirements Specification Documents
  5. Use Case Specification Documents
  6. Functional Requirement Document
  7. Business Requirement Document
  8. Requirements Traceability Matrix

30. Name the different types of diagrams that a Business Analyst uses?

The different types of diagrams are:

  1. Flow Charts: It is a diagrammatic representation of the complete flow of the system.
  2. Activity Diagram: It explains the diverse activities and their flow across different departments.
  3. Use Case diagrams: It uses a set of actions, services, and functions that a system needs to perform.

Common Business Analyst Interview Questions and Answers

31. Explain Analytical Reporting?

An Analytical report can be defined as a type of business report that makes use of quantitative and qualitative company data or information to analyze and evaluate the business strategy and empower the employees to make data decisions based on the analytics.

32. Explain the term Exception?

Exceptions are defined as unaccepted situations or results in an application.

33. What is alternate flow in a use case diagram?

In case of system failure, you have to follow the alternate solution or activity in the use case.

34. Can you name the two documents related to the use case?

The two documents that are related to the use case are listed below:

  1. FRD(Functional Requirement document)
  2. SDD(System Design Document)

35. Name the tools that are helpful for a business analyst?

The tools that are helpful for business analyst are listed below:

  1. MS Word
  2. MS Visio
  3. PowerPoint
  4. MS Excel
  5. MS Project

Business Analyst Interview Questions and Answers

36. Explain SaaS?

SaaS (Software as a Service) is referred to as cloud computing. It is different from native software, all you need is an internet connection and a web browser to use it.

37. Explain User-centered design methodology?

There will be some scenarios where we have to depend on the end-users. We have to develop the system from the user’s point of view. Persona is helpful in such scenarios.

38. Explain Database transactions?

Database transactions are referred to as the actions that are performed on the database like addition, modification, deletion, etc.

39. Explain Plug Matrix?

Plug Matrix is useful to decide the most optimal and alternate solutions. It is also known as a problem or design matrix.

40. What does SQUARE stand for?

SQUARE means Security Quality Requirement Engineering. It is software that focuses on documenting the system’s security requirements.

Business Analyst Interview Questions and Answers

41. Explain the term 8-Omega?

8-Omega is a business framework that is adopted by firms and organizations for their business betterment. Some of the key factors are Process, People, Technology, and Strategy.

42. Explain the term FMEA?

FMEA means Failure Mode and Effects Analysis. It is used in product development, operations management, and system engineering for failure analysis. Here, the analysis is done to find out different failure modes in the system.

43. Explain OLTP?

OLTP means Online Transaction Processing. This system is mainly used for database transactions by increasing the efficiency of the transactions.

44. Explain the term Application Usability?

Application Usability can be referred to as the quality of the system that makes a useful system to its end users. It aims to achieve user goals.

Business Analyst Interview Questions and Answers

45. Name the key areas in a Kano analysis?

Kano analysis has three main key areas that are:

  1. Unexpected delighters
  2. Performance attributes
  3. Must-have attributes.

46. Can you differentiate between Fish Model and V Model?

Fish ModelV Model
It is very costly and time-consuming.It is less costly, and it takes less time.
Testing is done at every phase.Testing is done at the last stage by testers.

47. Explain the concept of black-box testing?

Black box testing is defined as testing where the entire unit is tested as a whole without considering the contents. This method focuses on the known input signal and checks for the output behavior whether it meets the required expectations or not.

48. What is UAT?

UAT stands for User Acceptance Testing. It is a kind of testing that is performed by the end-user or the client to accept the software system before moving the software to the production environment.

49. What is OOAD?

OOAD means Object-Oriented Analysis and designing. It is mainly used in object-oriented languages like C++, Java, etc.

50. What is RAD?

RAD is defined as a development process that is helpful to build applications in a short period of time. You can build an application in 50-70 days on compromises.

Business Analyst Interview Questions and Answers

51. Can you define the Scrum method?

The scrum method is defined as an agile method that is used for developing iterative information systems. Here they create a number of small teams, and each team is asked to work on the specified task.

52. What is ETL?

It is a mechanism that extracts the data from various source systems and then transforms the data by applying concatenations, calculations, etc., and loads the data into a data warehouse system. ETL stands for Extract, Transform, and Load

53. What is the abbreviation for JAD?

JAD means Joint Application Development.

54. Can you name the best practices to follow while writing the use case?

The best practices that are to be followed are listed below:

  1. Make use of active voice.
  2. Single statements per line.
  3. Use a template
  4. Make per and postconditions verifiable.
  5. Do not include design.

55. Can you tell us the major difference between risk and issue?

A risk can be defined as a future event that has a negative impact on the business objective. In contrast, the issue is a result of the event that is currently happening.

Top Business Analyst Interview Questions and Answers

56. What is CaaS?

CaaS means Communication as a Service. It is a mechanism of delivering the communication services as a method to software as service delivery.

57. Define Agile?

Agile is a mechanism or technique which uses lightweight methodologies like Extreme Programming, Rapid Application Development, and Scrum. These methodologies mainly focus on the development of iterative solutions.

58. Can you explain how to avoid scope creep?

Scope creep can be avoided as:

  1. By documenting the scope of the project
  2. By following the proper change management
  3. By informing the effects of the change to the affected parties before making the changes
  4. By documenting the new requirements in the project log

59.  Can you tell us the important aspects of creating analytical reporting?

The important aspects of creating analytical reporting are listed below:

  1. The ability to think critically
  2. Understand the business analysis
  3. Show your analysis skills.

60. Name the members of the Scrum team?

The Scrum Team consists of:

  1. Product owner
  2. Scrum master
  3. Development team

Good luck with your Business Analyst job Interview, and we hope our Business analyst interview questions were of some help to you. You can also check our Microstrategy Interview Questions and Answers, which might be of some help to you.

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