DA0-002 Visualization and Reporting Practice Question
A data analyst is presenting a recommendation to reduce inventory costs. The evidence shows that overstocking occurs in 30% of warehouses. Which of the following best structures the recommendation?
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
✓
"Overstocking occurs in 30% of warehouses. This indicates poor demand forecasting. We recommend implementing a just-in-time system to reduce inventory holding costs by 15%."
A proper data-driven recommendation follows the sequence: evidence → insight → recommendation → expected impact.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
"Implement a just-in-time system."
Why it's wrong here
Missing the supporting evidence and insight.
- ✗
"Our inventory costs are too high. We need to fix this."
Why it's wrong here
Lacks evidence, specific insight, and measurable impact.
- ✓
"Overstocking occurs in 30% of warehouses. This indicates poor demand forecasting. We recommend implementing a just-in-time system to reduce inventory holding costs by 15%."
Why this is correct
Follows evidence → insight → recommendation → expected impact.
- ✗
"We should reduce inventory by 20%. This will save costs."
Why it's wrong here
Missing evidence and insight linking to the overstocking issue.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This DA0-002 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the DA0-002 exam.