Top most important Business analyst interview questions and answers by Experts

Here is a list of Top most important Business analyst interview questions and answers by Experts.If you want to download Business analyst interview questions pdf free ,you can register with RVH techguru. Our experts prepared these Business analyst interview questions to accommodate freshers level to most experienced level technical interviews.

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1) What is a flowchart and why it is important?
Flowchart shows complete flow of system through symbols and diagrams. It is important, because it makes the system easy to understand for developers and all concerned people.
2) Define Use Case Model?
Use case model shows sequence of events and stream of actions regarding any process performed by an actor.
3) What does UML stand for?
It stands for Unified Modeling Language.
4) Do you think Activity Diagram is important and how?
As the name implies, activity diagram is all about system activities. Main purpose of activity diagram is to show various activities taking place in an organization in different departments.
5) Can you name the two types of diagrams heavily used in your field?
The two diagrams are Use Case Diagram and Collaboration Diagram
6) Do you know what is meant by an alternate flow in a use case?
It is the alternative solution or activity in a use case that should be followed in case of any failure in the system.
7) What are exceptions?
These are the unexpected situations or results in an application.
8) What are extends?
Extends are actions that must take place in a use case.
9) Name the two documents related to a use case?
The two documents are FRD (Functional Requirement Document) and SDD (System Design Document).
10) What is the difference between Business Analyst and Business Analysis?
Business Analysis is the process performed by the Business Analyst.
11) As a business analyst, what tools, you think are more helpful?
There are many but I mostly use, Rational Tools, MS Visio, MS Word, MS Excel, Power Point, MS Project.
12) In your previous experience, what kind of documents you have created?
I have worked on, Functional Specification Documents, Technical Specification Documents, Business Requirements Documents, Use Case Diagram etc.
13) What INVEST stands for?
INVEST means Independent, Negotiable, Valuable, Estimable, Sized Appropriately, Testable. It can assist project managers and technical team to deliver quality products/services.
14) Define SaaS?
SaaS means Software as a Service. It is related to cloud computing. It is different from other software as you don’t need this type of software to be installed on your machine. All you need is an Internet connection and a Web Browser to use it.
15) What steps are required to develop a product from an idea?

You have to perform, Market Analysis, Competitor Analysis, SWOT Analysis, Personas, Strategic Vision and Feature Set, Prioritize Features, Use Cases, SDLC, Storyboards, Test Cases, Monitoring, Scalability.
16) What do you think is better, the Waterfall Model or Spiral Model?
It all depends on the type and scope of the project. Also a life cycle model is selected on the basis of organizational culture and various other scenarios to develop the system.
17) How can you explain the user centered design methodology?
It all depends on the end users. In such scenario, we develop the system with a user’s point of view. Who are the end users, what they require etc. Personas are basically social roles, performed by any actor or character. It is derived from a Latin word meaning character. In marketing terminology, it represents group of customers/end users.
18) How do you define Personas?
Personas are used instead of real users that assist developers and technical team to judge the user behavior in different scenarios, more clearly. Personas are basically social roles, performed by any actor or character. It is derived from a Latin word meaning character. In marketing terminology, it represents group of customers/end users.
19) Define Application Usability?
Application usability is actually the quality of the system that makes the system useful for its end users. System’s usability is good if it is capable of achieving users’ goals. Personas are basically social roles, performed by any actor or character. It is derived from a Latin word meaning character. In marketing terminology, it represents group of customers/end users.
20) Explain in your words, what is database transaction?
When we perform any activity in a database, such as addition, deletion, modification, searching etc. is said to be a database transaction.
21) Define OLTP Systems?
OLPT stands for On-Line Transaction Processing; such systems are capable to perform database transactions and are meant to provide good speed for database transactions. These systems are mainly used for data entry and retrieving data from the database.
22) Do you have any idea about Pugh Matrix?
Pugh Matrix is used to decide about the most optimal and alternate solutions. This technique is now a standard part of Six Sigma technique. It is also known as problem or design matrix.
23) What FMEA stands for?
It means Failure Mode and Effects Analysis. It is a failure analysis, that is used mainly in product development, system engineering and operations management. This analysis is performed to figure out various failure modes and their severity in any system.
24) What is a 100-point method?
This method is used to assign priority to different steps in a process. Each group member is supposed to assign points to different steps. In the end all the points for each step are calculated. The step having the highest points has the highest priority.
25) Do you know what 8-omega is?
It is a business framework that is mainly being adopted by firms and organizations for the betterment of their business. Its key factors are Strategy, People, Process, Technology.
26) Can you define mis-use case?
It is a term derived from use-case. Unlike use case, a mis-use case is something that shows -what kind of malicious activities can be performed by an actor that may result in system failure.
27) What is SQUARE stands for?
SQUARE stands for Security Quality Requirements Engineering. It is one of the software engineering steps that mainly focus on documenting the security requirements of the system.
28) What is Pareto Analysis?
It is a decision making technique, also known as 80/20 rule. It is used for quality control and defect resolution. It explains few factors that can be responsible for big problems. It is named as 80/20 rule, because as per this rule, 80 % effects in the system, arises from 20 % causes.
29) Do you have any idea about Agile Manifesto?
Agile Manifesto is a guide for software developers about the development principles to ensure iterative solutions.
30) What BPMN stands for?
It is Business Process Model and Notation. It is a graphical representation of business processes.
31) Define BPMN Gateway?
BPMN Gateway is a processing modeling component that is used to control flow of interaction, sequence of processes.
32) Name the five basic elements’ categories in BPMN?
They are Flow Objects, Data, Connecting Objects, Swimlanes and Artifacts.
33) Have you ever used Kano Analysis in your previous jobs and how do you define it?
Yes, I have used Kano Analysis in one of my previous jobs. Kano Analysis is used to analyze a system in terms of its requirements to identify its impact on customers’ satisfaction.
34) How many key areas are there in a Kano Analysis?
They are three in number, namely as Unexpected Delighters, Performance Attributes and Must Have Attributes.
35) Define Pair-Choice Technique?
The pair-Choice Technique is used to give priority to various items in a process. It is mainly used when distinctive stakeholders are involved in the project. This technique asks from the group to compare each item with the other and select the one having highest priority.
36) Do you have suggestions to make an effective use-case model?
Yes, I would suggest making two separate diagrams. One serves as a use-case and the other serves as an actor diagram. So that we can highlight all the possible activities in a use case & in actor diagram and then we can merge both the diagrams to get an effective use-case diagram.
37) How many types of actor can be there in a Use-Case?
There are primary and secondary actors. Primary actors start the process and secondary actors assist them. Moreover, actors can be of four types such as Human, System, Hardware and Timer.
38) Define BCG Matrix?
The Boston Consulting Group (BCG) matrix is developed to analyze several of business processes and new product offerings from companies. It is a useful tool that can be used in portfolio analysis, strategic management, product management, and brand marketing.
39) How can you differentiate between pool and swimlane?
A swimlane is related to group activities on an activity diagram while a pool is dedicated activity to a single person.
40) Differentiate between Fish Model and V Model?
Fish model is comparatively very costly and time consuming, while, V model requires less time and cost. Moreover, Fish model is used when there were no ambiguities in the customers’ requirements. Otherwise, other model is preferred.
41) How do you manage frequently changing customers’ requirements while developing any system?
As a business analyst, I would develop a document stating clearly that no change will be accepted after a certain period of time and get it signed by the user.
42) Define Use Case points?
Use Case points are used to evaluate the cost of work done to develop the system.
43) What does PEST stand for?
It means Political, Economic, Social, and Technological. It is used to analyze business environment, in which it has to be operated.
44) Name the four key phases of business development?
They are Forming, Storming, Norming, and Performing.
45) Define Benchmarking?
Benchmarking is about measuring performance of an organization to compete in the industry. In this process a company may measure its policies, performance, rules and other measures.
46) What do we mean by SWEBOK?
It means Software Engineering Body of Knowledge.
47) What do you know about GAP Analysis?
It is a process of comparing and determining the difference between two things or processes.
48) Define Agile?
Agile is basically a technique that uses several light-weight methodologies such as Rapid Application Development (RAD), Extreme Programming (XP) and SCRUM. All these methodologies focus on the development of iterative solutions.
49) Define Scrum Method?
It is one of the agile methods, used to develop iterative information systems. In this method a small team works on the assigned tasks for a time period of 30 days usually.
50) What does JAD stand for?
It means Joint Application Development.
51) What do you see as the key skills of a business analyst?
There are several skills required to be a successful Business Analyst. They are not just linited to your work. These skills even include your personal qualities and approach towards your clients. Some of the key skills expected from any Business Analyst are:
• Customer Service skills
• Strategic thinking approach
• Good communication skills
• Collaborating with other employees and colleagues
• Analytical skills
• Leadership skills
• Customer oriented
• Ability to drive and adapt to the changes.
52) What is a use case model?
A business analysis presentation of the steps involved in defining the interactions between a user (actor) and a system (computer system) is termed as use case model. It gives details on the interactions and sets the expectations of how the user will work within the system. The use case model consist of 2 main elements:
• Use case diagram – It is a graphical representation that details which actors can operate which use cases
• Use case description – It is a detailed textual step by step presentation of interactions and dialogue between the actor and the system.
53) What is an activity diagram and why is it significant?
An activity diagram is a simple and intuitive type of a flow chart which enables analysts to present a robust and easy visual of the workflow of a business use case. The objective of activity diagram is to show various activities taking place in an organization in different departments. Different departments in any organization like HR, Accounts, Sales, etc. have access to the screens that relate to their fields but activity diagrams highlight the differences in the departments which help the developers when they code and design. The important elements in Activity diagram are initial nodes, control flows, activities, decisions, guard conditions, a fork and join and end nodes.
54) Define SaaS?
SaaS stands for Software as a Service. It is related to cloud computing. It is an online software for which you just need an internet connection and a web browser. Unlike other softwares, you need not have to install it on your machine. SaaS is a software delivery model in which the software, and usually the data, are hosted “in the cloud”.
55) What is a BCG Matrix?
To evaluate and analyze the business units and product offerings of corporations, the Boston Consulting Group developed the BCG Matrix in 1986. Companies use this simple 2 x 2 matrix as an analytical tool in portfolio analysis, strategic management, product management, and brand marketing.

Question Marks: These are the business having low market share in a fast growing market. As the market growth is strong, there is a potential for Question Marks to grow. They require large amounts of capital to gain in market share.
Stars: These businesses enjoy large market share in fast growing market. Stars boast a prominent market position for the time. They require investment of resources to maintain or increase their market share if the market continues to grow.
Dogs: These businesses have a low market share in a slow growing and mature market. They are small projects with small amount of capital allocated to support them. They barely make enough to sustain themselves and are the weakest of situations.
Cash Cows: These businesses enjoy a relatively high market share with a low market growth. It represents the already matured market and the business is well established and positioned in the market. These businesses generate revenue which is in excess of what is required for sustenance.
56) What is PEST analysis and what is its importance?
PEST basically stands for Political, Economic, Social and Technological. PEST analysis is used to assess the above four external factors in relation to your business situation. It is beneficial for your business as them help in understanding how these 4 factors will affect your business in the long term. A detailed understanding of PEST analysis can be obtained from our blog.
57) What do you know about GAP Analysis and what is its importance?
GAP analysis is the process of comparing the current state and the proposed state of any business and its functionalities. It comes under the Enterprise Analysis which is a knowledge area of a business Analyst. It helps in determining what steps need to be taken to meet the proposed state requirements for the business. In simple language it can be defined as a gap between 2 questions – ‘Where we are?’ and ‘Where we want to be?’
This analysis can be conducted for:
• How the Current business process activities and steps are vs how will be the future business process activities and steps.
• How the data that a system provides to an interface is now vs how the data needs to be provided in the future
• How well a business meets certain goals and metrics now versus the targeted goals and metrics in the future.
58) What is UML modeling?
UML is Unified Modeling Language. UML is the standard that the industry uses for visualizing, documenting and constructing various components of a system. It is a modeling standard used primarily for software development, but can also be used for other conceptual models such as describing job roles, business processes and organizational functions. For Business Analysts UML is being able to represent requirements with use cases, class diagram and state diagrams. For Business Analysts, the important part of understanding UML is in understanding the diagram tools and when and how to use them best.
59) What is the importance of a flow chart?
A flow chart is a tool that provides a graphical representation of a process. This chart will make a system easy to understand for everyone that is involved with the project that is underway. If you have a massive and complex project with many entities, data, data sources, data destinations and processes involved, a data flow chart is one of the most effective ways of making sense of all that data. The flowchart mostly concerns itself with the flow of data through the system. It is popularly used in Structured Systems Analysis and Design.