DA0-002 Visualization and Reporting Practice Question
A business analyst needs to explain to a sales director that the reported revenue has a 95% confidence interval of ±2%. Which concept is being communicated?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Uncertainty communication
Confidence intervals quantify the uncertainty around a metric, conveying that the true value may vary.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Data governance
Why it's wrong here
Data governance defines ownership, policy and stewardship of data assets; it does not quantify the sampling uncertainty around a reported figure. It tempts because governance underpins reliable reporting, yet the ±2% interval is a statistical statement about estimate precision, not a policy matter.
- ✓
Uncertainty communication
Why this is correct
A 95% confidence interval of ±2% communicates uncertainty: the true revenue plausibly lies within that range around the estimate. Framing it this way tells the sales director the precision of the reported figure, rather than presenting a single value as exact.
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Single version of truth
Why it's wrong here
A single version of truth ensures one agreed, reconciled figure across the organisation; it addresses consistency, not the probabilistic range around an estimate. It tempts because revenue reporting demands agreed numbers, but ±2% at 95% confidence communicates statistical uncertainty.
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Data lineage
Why it's wrong here
Data lineage traces a value's origin and transformations across systems; it says nothing about sampling error or the precision of an estimate. It tempts because lineage underpins trustworthy reporting, but the ±2% range at 95% confidence describes statistical uncertainty, not provenance.
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