Top 30 Business Analyst Interview Questions (2023)

Understanding a business and making necessary changes for its growth is a challenging task. Choosing business analytics as a career will upgrade your personal and professional life. The role of a Business Analyst in a company is very crucial as they have to understand the requirements of the business and then ask the team to work in the same direction. Thus, cracking the interview to step into a position requires special attention.

In this article, we are going to discuss the Top 30 Business Analyst Interview Questions with their answers that will help in interviews.

Technical Questions – Business Analyst Interview

Q1. What is Business Analysis?

Ans. Business analysis is a combination of gaining insight from data using specific techniques, and performing tasks to identify the needs of a business—then, recommending changes and providing solutions that produce value for the stakeholders.

Q2. Who is a Business Analyst?

Ans. Through analysis of data, a person who processes, interprets and documents business processes, products, services and software is known as Business Analyst.

Q3. What is the role of Business Analyst?

Ans. Roles of a Business Analyst:

1. Assessing and identifying areas for improvement in the company’s present business processes.
2. Coaching and training employees.
3. Creating projects and monitoring their development.

Q4. What is the need for a Business Analyst in the company?

Ans.

1. Business Analysts engage with existing and prospective customers and help them to understand products and solutions to meet their business requirements.

2. They can help our organization by promoting products and solutions using presentations, demos and effective documentation.

Q5. Define SaaS.

Ans: SaaS is the short form of Software as a Service. It is a business model that provides cloud computing as its product. SaaS uses the Internet to deliver subscription software services, which are managed by a third-party vendor. Examples for SaaS are Dropbox, Google Workspace, and Salesforce.

Q6. What are Personas?

Ans: Personas are non-existent characters that take the role of customers or end users. With personas, a company can analyze the behavioral patterns of the customers/end users. Creating personas helps the designer to understand users needs, experiences , behaviors and goals.

Q7. Define Data Base Transaction.

Ans: Data Base Transaction is the process of altering Data Bases, for example, addition, subtraction, searching, modification, etc. A database transaction is a sequence of multiple operations performed on a database, and all served as a single logical unit of work taking place wholly or not at all.

Q8. Elaborate on OLTP.

Ans: On-Line Transaction Processing is used for efficient and faster database transactions. Used for entering and retrieving data from the database. A database transaction is a change, insertion, deletion, or query of data in a database.

Q9. How does 100 point Method work?

Ans: Each member is assigned to give prioritize the steps in a system. In the end, work is prioritized based on the points/marking. Each stakeholder is given 100 points that he or she can use for voting in favor of the most important requirements.

Q10. What does BPMN stand for? Also, define BPMN Gateway.

Ans: BPMN stands for Business Process Model Notation. BPMN is the global standard for modelling business processes, a fundamental part of business process management. BPMN Gateway controls and processes the flow of interaction.

Q11. What is the importance of PEST?

Ans: PEST is the acronym for Political, Economic, Social, and Technological. This help in the standardization of the business environment and work culture. This type of analysis is used to gauge external factors that could impact the profitability of a company.

Q12. Give a brief description of the Kano Analysis.

Ans: Kano Analysis is a business tool used to understand and analyze the response of end users/customers to a specific product or service. It’s a way to identify the basic needs of customers, as well as performance and excitement requirements.

Q13. Mention the important areas of Kano Analysis.

Ans: The important areas of Kano Analysis are as follows-

• Must-Have Attributes
• Performance Attributes
• Unexpected Attributes

Q14. How does CaaS work?

Ans: CaaS stands for Communication as a Service. It is a collection of vendor services that are helpful in business communication. It is a specialized variation of SaaS. CaaS is a form of container-based virtualization where applications and their dependencies are bundled into lightweight, portable containers.

Q15. Define Benchmarking.

Ans: It is the process of measuring the business performance of an organization. It defines the competitiveness of the company in the industry. The point of benchmarking is to identify internal opportunities for improvement.

Q16. Expand FMEA.

Ans: FMEA stands for Failure Mode and Effect Analysis. It is used for operation management and product development. It is a systematic, proactive method for evaluating a process to identify where and how it might fall and to assess the relative impact of different failures, in order to identify the parts of the process that are most in need of change.

Q17. Explain about Data Collection Plan.

Ans: As the name suggests, it is creating an efficient plan to collect all the critical data. Plan consists:

• Understanding the types of data that need to be gathered.
• Searching for Data Sources to analyze the data.

Q18. What is a Scope Creep?

Ans: Scope Creep is a situation in which unexpected changes happen in a project. This can be due to a lack of proper planning. Scope creep happens when a project’s completion requirements increase past the planned project requirements.

Q19. Give a note on SRS.

Ans: System/Software Requirements Solutions is a formal document share between customer and developer regarding software requirements. SRS provides an overview of the entire SRS with purpose, scope, definitions, acronyms, abbreviations, references, and overview of the SRS.

Q20. Mention any five key elements in SRS.

Ans: The five key elements in SRS are:

1. Dependencies
2. Assumptions
3. Constraints
4. Functional Requirements
5. Non-Functional Requirements

Q21. What is a KPI?

Ans: KPI stands for Key Performance Indicator. KPIs are targets that help you measure progress against your most strategic objectives. Popular KPI examples include customer satisfaction, employee retention, revenue growth, and cost reduction.

Q22. What is a Use Case?

Ans: Use Cases are business analysis techniques that are used to understand the behavior of the user with the system or product. For example: An e-commerce user selects an item they want to buy, so they place it in their online cart intending to place the order and pay electronically.

Q23. Name the documents used in Use Cases.

Ans: The documents that can be helpful in Use Cases are –

• System Design Document (SDD)
• Functional Requirement Document (FRD)

Q24. What is a Misuse Case?

Ans: Misuse Case defines the activities that can be performed by an end user/ customer that can result in system failure. A sequence of actions that can be performed by any person or entity in order to harm the system.

Q25. What is an ER Diagram?

Ans: Entity Relationship Diagram or shortly ERD, is the representation of the relationship between different entity sets in a database. An entity-relationship diagram, or ER diagram, is essential for modelling the data stored in a database.

Non–Technical Questions – Business Analyst Interview

Q26. What made you choose Business Analyst as a career option?

Ans: Every individual has unique interests in choosing Business Analyst as a career option. You can prepare your answer according to your interest. Keep in mind it is necessary to connect those answers with the domain in which you are going to enter.

Q27. What are the skills any business analyst must possess?

Ans: A Business Analyst understands the business and provides ideas for development. The important skills one must have to become a good Business Analyst are –

1. Analytical Skills
2. Problem-Solving Skills
3. Leadership Qualities
4. Business Processing
5. Planning, etc.

Q28. Mention any 5 digital tools used as a Data Analyst.

Ans: Digital Tools used by a Data Analyst are-

• Microsoft Power BI
• MS Visio
• Trello
• Adobe XD
• MS Excel

Q29. Why do you use Microsoft Power BI over other business intelligence tools?

Ans: For this, you must have a thorough knowledge of how Power BI (for instance, any tool you regularly use) works. Give a detailed explanation of the features in Power BI with a scenario where you have effectively used that tool.

Q30. How do you manage if there is any missing data?

Ans: Ways I would opt to deal with missing data-

• Remove rows and columns that have missing data
• Filling missing data with values obtained from additional research
• Leaving missing data

Conclusion

Business Analyst requires many technical and analytical skills to handle the work that is allocated. Adding interview-facing skills in that bag can always put you a step ahead. A well-prepared mind can always get to hit the target. With enough practice in all the technical aspects and personality, one can easily cakewalk in the interview.