Top 61 Business Analyst Interview

Questions and Answers​

Q1. What is a flowchart?​
Ans. A flowchart shows the complete flow of the system through symbols and diagrams. This is
the most common business analyst interview question.​
Q2. Define BCG Matrix?​
Ans. The Boston Consulting Group (BCG) matrix is developed to analyse several business
processes and new product offerings from companies.
Q3. What is the difference between the analysis model and the
design model?​
Ans. The analysis model is to help with the understanding of the problem by breaking it into its
components. The design model is to help with the creation of a solution for an analysed
problem.​
Q4. What does UML stand for?​
Ans. Unified Modelling Language is the full form.​
Q5. Name the two types of diagrams heavily used in BA?​
Ans. Use Case Diagram and Collaboration Diagram are two major types used in business
analysis.​
Q6. What are extends?​
Ans. Extends are actions that must take place in a use case. Such business analyst interview
questions want to test your knowledge of such basic topics. Try elaborating on it.​
Q7. What is the difference between a business requirement
document (BRD) and a functional requirement document (FRD)?​
Ans. The business requirement document states the high-level business requirement along with
the business need and business problem.​
On the other hand, a functional requirement document states the functionality required in the
application designed for the business problem and the need to be mentioned in the Business
requirement document.​
Q8. Differentiate between Fish Model and V Model?​
Ans. The fish model is costly and time-consuming while V Model requires less time and cost.​
Q9. What is Benchmarking?​
Ans. Benchmarking is about measuring the performance of an organisation to compete in the
industry.​
Q10. What is Pareto Analysis?​
Ans. Pareto analysis, also known as the 80/20 rule, is used for quality control and defect
resolution.​
Q11. What is the 100-point method?​
Ans. The method is used to assign priority to different steps in a process.​
Q12. What does INVEST stand for?​
Ans. INVEST means Independent, Negotiable, Valuable, Estimable, Sized Appropriately, and
Testable. It can assist project managers and technical teams to deliver quality products/services.​
Q13. Define Application Usability?​
Ans. Application usability is actually the quality of the system that makes the system useful for
its end users. The system’s usability is good if it is capable of achieving users’ goals.​
Q14. Define OLTP Systems?​
Ans. OLTP stands for On-Line Transaction Processing; such systems are capable to perform
database transactions and are meant to provide good speed for database transactions.​
Q15. Do you have any idea about Pugh Matrix?​
Ans. Pugh Matrix is used to decide about the most optimal and alternate solutions. This
technique is now a standard part of the Six Sigma technique. It is also known as the problem or
design matrix.​
Q16. Define BPMN Gateway?​
Ans. BPMN (Business Process Model and Notation) Gateway is a processing modelling
component that is used to control the flow of interaction, sequence of processes.​
Q17. What are the five elements in BPMN Gateway?​
Ans. They are flow objects, data connection objects, swimlanes and artefacts.​
Q18. What is FMEA?​
Ans. It means Failure Mode and Effects Analysis. It is a failure analysis that is used mainly in
product development, system engineering and operations management.​
Q19. Do you know what 8-omega is?​
Ans. It is a business framework that is mainly being adopted by firms and organizations for the
betterment of their business.​
Q20. What are the factors in 8-omega?​
Ans. The factors are strategy, people, process, and technology.​

Q21. What is Kano Analysis?​

Ans. Kano Analysis is used to analyse a system in terms of its requirements to identify its impact
on customers’ satisfaction.​
Q22. What are the key areas in a Kano Analysis?​
Ans. Unexpected Delighters, Performance Attributes and Must-Have Attributes.​
Q23. Define Personas?​
Ans. Personas are used instead of real users that assist developers and technical teams to judge
the user behaviour in different scenarios.​
Q24. Define Pair-Choice Technique?​
Ans. The pair-Choice Technique is used to give priority to various items in a process.​
Q25. How can you differentiate between pool and swimlane?​
Ans. A swimlane is related to group activities on an activity diagram, while a pool is dedicated
activity to a single person.​
Q26. Name the documents that a Business analyst creates.​
Ans. This is an important business analyst interview question that you should consider. Mention
that the documents that a business analyst needs to prepare, include –​
• Business Case​
• Business Analysis Plan​
• Business Requirements Document (BRD)​
• Stakeholder Management Plan​
• System Requirements Specification Document (SRS)​
• Process Document​
• Gap Analysis Document​
• Requirements Traceability Table (RTT)​
• System Test Cases​
• UAT Progress Report​

Q27. What is SIPOC?​

Ans. SIPOC is an acronym for Suppliers, Inputs, Process, Outputs and Customers. This tool uses
information from these segments and creates a process map, providing a high-level overview of
a Six Sigma project. Many organizations these days use the opposite acronym COPIS, putting
customers first and explaining the value of a customer to the organization.​
Q28. As a business analyst, which tools will you use extensively?​
Ans. There are many tools; however, the most popular ones are –​
• MS Office Suite​
• Google Docs​
• Rational Requisite Pro​
• SWOT​
• Trello​
• Pencil​
• Version One​
• Balsamiq​

Q29. What is a Data Collection Plan?​

Ans. A Data Collection Plan is used to collect all the critical data in a system. It covers two things.​
• Type of data that needs to be collected or gathered​
• Different data sources for analyzing a data set​
Q30. What is SRS?​
Ans. It is the abbreviation for System/Software Requirements Specification and is a set of
documents that describe the features of a system or software application.​
Q31. What are the key elements of SRS?​
Ans. SRS includes a number of elements that define the intended functionality required by
businesses to meet the requirements of the end-users. These elements are –​
• Scope of Work​
• Functional Requirements​
• Non-Functional Requirements​
• Dependencies​
• Assumptions​
• Constraints​
• Acceptance Criteria​
• Data Model​

Q32. What is Scope Creep? How will avoid Scope Creep?​

Ans. Also known as requirement creep, Scope Creep refers to damages or deviations in any
project’s scope within the same resource range, and these are beyond human control. It
indicates poor project management and is a potential risk to a project.​
Q33. What are the common reasons behind Scope Creep?​
Ans. It can be because of any uncontrolled issue, but the primary reasons behind Scope Creep
are –​
• Poor or miscommunication between the stakeholders of a project​
• Improper documentation of project requirements​

Q34. What is MSA?​

Ans. The full form of MSA is Measurement System Analysis. MSA is used to check if a
measurement system is accurate. It evaluates a system’s accuracy, precision, and stability.​
Q35. What is Gap Analysis?​
Ans. It is a method to assess differences in performance between the existing system and
functionalities of a business. It is a performance level comparison that checks whether business
requirements are being met and devises the ways that can help to get the required results.​
Q36. Can you differentiate between a Risk and an Issue?​
Ans. A Risk is a problem that has been predicted earlier and improvement plans are devised for
them, while an Issue is a problem that has already occurred.​
Q37. What do you understand by the term “Misuse Case”?​
Ans. Misuse Case is a malicious activity that causes system failure as it misguides the system
function flow.​
Q38. What is Requirement Prioritization?​
Ans. Requirement Prioritization is the process of allocating and managing different
requirements to cope with the limited resources of projects, as per relative importance and
urgency.​
Q39. What are the different techniques used for requirement
prioritization?​
Ans. This is an important business analyst interview question and a follow-up to the previous
one. You can mention and in fact, even provide examples of the most popular techniques used
for requirement prioritization listed below.​
• Dependency map​
• MoSCoW – Must, Should, Could or Would​
• Voting​
• Bubble sort technique​
• Kano Model Analysis​
• Hundred Dollar Method​
• Five Whys​

Q40. Name the components of strategy analysis.​

Ans. The key components of strategy analysis are –
• Vision​
• Mission​
• Objectives​
• Strategies​
• Action plan​
Q41. What is the requirement elicitation technique?​
Ans. Requirement elicitation is a process of gathering requirements from stakeholders, users,
and customers through meetings, questionnaires, interviews, brainstorming prototyping,
sessions, etc. It is considered a very challenging and most error-prone communication
methodology, which can be successfully achieved only through an effective customer-developer
partnership.​
Q42. What is RUP Methodology?​
Ans. It is an abbreviation for Rational Unified Process and is a methodology to improve a
product’s application. It is an object-oriented approach for successful project management
and high-quality software development.​
Q43. Explain the usability of the Requirement Traceability Matrix.​
Ans. Requirement Traceability Matrix records a user’s requirements and ensures that all the
requirements of the client are meticulously met.​
Q44. What is Alternate Flow in Use Case Diagram?​
Ans. Alternate Flow in Use Case Diagram is a scenario that suggests that a user has taken an
alternative route to achieve the desired result. It is an optional flow in case of any failure.​
Q45. What is an Affinity Diagram?​
Ans. An Affinity Diagram is an analytical tool used to cluster or organize ideas into subgroups.
These ideas are mostly generated from discussions or brainstorming sessions and used in
analysing complex issues.​
Q46. Explain INVEST.​
Ans. It is the abbreviation for –​
‘I’ndependent, ‘N‘egotiable, ‘V‘aluable, ‘E‘stimable, ‘S‘ized Appropriately and
‘T‘estable.​
It helps business analysts create quality user stories.​
Q47. As a business analyst, what type of problems you may face?​
Ans. Problems may arise at any given stage of a project and a business analyst should be
prepared for challenges like –​
• Undocumented processes
• Technology-related problems​
• Business policies related issues​
• Business model errors​
• Issues with stakeholders​
• Miscommunication among team regarding the scope of work​
Q49. What is the Agile Manifesto?​
Ans. Agile Manifesto is a brief software guide for agile software development and is built on 4
values and 12 principles.​
Do read up on agile project management as well.​
Q49. Name different types of Agile methodologies.​
Ans. Some popular Agile methodologies are –​
• Agile Scrum Methodology​
• Lean Software Development​
• Kanban​
• Extreme Programming (XP)​
• Crystal Methodology​
• Dynamic Systems Development Method (DSDM)​
• Feature Driven Development (FDD)​

Q50. What is the difference between a Histogram and a Boxplot?​

Ans. A histogram graphical represents the frequency distribution of numeric data, while a
Boxplot summarizes the critical aspects of continuous data distribution.​
Q51. What is an effective feasibility study?​
Ans. A good feasibility study for any business analyst is to identify problems and the
requirements necessary for a project to run successfully. Furthermore, you can mention that
there are six essential aspects to cover in a feasibility study such as:​
• Project Scope: It is about defining the problems and opportunities that affect the business
directly or indirectly. ​
• Current analysis: By identifying and weighing the current project’s advantages and
disadvantages, a business analyst can discover where modifications are required. This helps
for upcoming projects and even helps in saving both money and time. ​
• Requirements: It is to find the requirements of each element within the project.​
• Approach: This is to determine whether the solutions for project operations are practicable. ​
• Evaluation: It is done to see whether the approach taken is economical. This can be done by
calculating the total cost and preparing a summary that includes other aspects such as ROI,
cost benefits and so on. ​
• Review: This is the final step in a feasibility study. It validates if the study is accurate or not. ​
Q52. Mention two differences between software development
lifecycle (SDLC) and project lifecycle (PLC). ​
Ans. You can give examples to elaborate this answer to the business analyst interview question.​

Q53. Briefly explain business process modelling and its advantages. ​

Ans. A graphical representation of an enterprise’s workflows to identify areas of improvement
is referred to as business process modelling. This is among the most important aspects of
business process management. The benefits you should mention are:​
1. It identifies and removes inefficient processes. ​
2. Everyone in the team is clear about the goals. ​

Q54. Name some business process modelling tools. ​

Ans. This is a follow-up question to the business process modelling question. Here the hiring
manager wants to know your advanced expertise in the field. ​
Do mention the following:​
• SIPOC Diagrams​
A SIPOC diagram refers to its acronym – Suppliers, Inputs, Process to improve, Outputs and
Customers receiving the outputs. This diagram helps in identifying the processes that require
improvement before work begins. ​
• Unified Modelling Language (UML) Diagrams​
This kind of object-oriented visual diagram covers individuals (referred to as actors), actions,
roles and classes within a system. ​
• Gantt Charts​
These charts are used for breaking down complex tasks into multiple sub-tasks that need to be
completed in a specific time frame. This helps organisations track workflows easily where strict
deadlines have to be met. ​
• Business Process Modelling Notation (BPMN)​
This type of diagram is mostly used for standard business process modelling. Currently, the
BPMN 2.0 model is used and learned as a methodology. ​
Q55. Mention a few differences between the Waterfall Model and
Spiral Model. Which, according to you, is the best?​
Ans. For this easy business analyst interview question, you can elaborate on the following.​

When you have to answer which model is the best, it is essential to point out that a company
prefers such and such model based on two aspects:​
1. Type of project​
2. The organisation’s culture​
Q56. Why should business analysts know about business models?
Which ones are you aware of?​
Ans. To make profits, it is important for a company to follow a business model. Business analysts
assess the company’s value proposition, policies, how it generates revenue and more. So these
professionals must know various business models to help a company stand out in the market. ​
This is a general interview question for junior business analysts. But recruiters may even ask
seniors based on the types they have practical experience of. Mention and elaborate on these
popular ones with examples. ​
1. Ad-based Business Model, where the company earns money through ads on the website. ​
2. Dropshipping is an alternative business model for eCommerce sites. Customers can see and
purchase from the listings on the site. But the suppliers have the inventory and they do the
shipping. ​
3. The SaaS business model is quite popular. SaaS is a software service that businesses use to
earn money from customers for services they use. ​
Read about the different types of business models to explain your answer better.​
Q57.What is the basic difference between functional and non-
functional specifications?​
Ans. Functional specifications or requirements are features or functions of a product to be
implemented by developers. The focus of functional requirements is to meet the requirement of
the user. ​
On the other hand, non-functional specifications determine how the product should be
performing. The focus of non-functional requirements is on what the user expects from a
product. ​
You can also mention the differences by describing how the Business Analysis Body of
Knowledge (BABOK) guide defines requirements. This will help your business analyst interview
answer be more specific.​
Q58. Name the stages of a project that a business analyst is involved
in.​
Ans. Typically, through the project life-cycle, business analysts work with project managers to
cover four stages​
1. Initiation of the project​
2. Planning the project​
3. Executing the project​
4. Closing the project​
As an additional tip, try to elaborate your answer to this business analyst interview question
with situations in which business analysts and project managers work together through the
project. Along with that, speak about documents that both the professionals need to create –
Project Vision, Solution Vision, etc. Also, talk about coordinating with project stakeholders and
communicating risks in the project, and so on. Ideally, you can give examples for each of the
stages. ​
Q59. Describe the importance of the CRUD matrix briefly. ​
Ans. CRUD stands for Create (create or store data), Read (read or retrieve data), Update (modify
the stored data), Delete (to remove data). CRUD matrix is a table that is used by business
analysts to determine the sets of users who generally have different types of accessing
permissions to access the data that is stored in a system.​
Q60. What exactly is the Requirements Traceability?​
And. The recruiter in this business analyst interview question wants to know your familiarity and
knowledge of the BABOK (Business Analysis Body of Knowledge) Guide. You can say that with
traceability, you get to know if the solution to the problem adheres to the requirements and
their individual relationships with each other. You can also mention that the guide discusses not
being too theoretical while using requirements traceability. ​
Q61. Describe the core concept model in Strategy Analysis, as briefly
as you can.​
Ans. This question arises from the BABOK guide on change. If you have read it and need to brush
up a little, discuss the following.​
• Change – creating a change strategy for the future​
• Need – identifying needs in the existing state and prioritising for the future​
• Solution – defining the solution for the change​
• Stakeholder – collaborating with stakeholders​
• Value – defining the value of the solution​
• Context – describing the overarching narrative of the change strategy​