DP-900 Describe core data concepts Practice Question
A bank processes individual customer transactions in real-time to update account balances and also runs a nightly job that aggregates all daily transactions into summary reports for management. Which of the following best describes these two processing workloads?
⚠ Common exam trap
Watch out — candidates often confuse the terms 'batch' and 'stream' with OLTP and OLAP, or incorrectly assume that any nightly job is 'batch processing' and any real-time task is 'stream processing,' when the exam specifically tests the distinction between transactional and analytical workloads.
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
✓
OLTP for real-time transactions, OLAP for nightly reports
Real-time individual transaction processing is the hallmark of Online Transaction Processing (OLTP), which focuses on high-volume, low-latency inserts and updates to maintain current account balances. The nightly aggregation of daily transactions into summary reports is a classic Online Analytical Processing (OLAP) workload, which involves complex queries over large historical datasets for business intelligence. These two workloads have fundamentally different performance and design requirements, making OLTP and OLAP the appropriate classifications.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
OLTP for real-time transactions, OLAP for nightly reports
Why this is correct
OLTP systems are optimized for high-concurrency, low-latency row-level inserts and updates, making them the correct engine for real-time balance changes and per-customer transactions. OLAP systems, by contrast, use columnar storage and aggregation-oriented query planning to handle complex analytical queries over large historical datasets, which matches the nightly reporting load. Using OLTP for reports would cause contention with transaction processing, while using OLAP for transactions would suffer from high write latency and poor point-update performance.
- ✗
Batch processing for transactions, Stream processing for reports
Why it's wrong here
This option mistakes arrival pattern for workload classification. Customer transactions are processed individually and immediately, which is online transaction processing, not batch processing; batch would defer updates and break real-time balance accuracy. Nightly reports are generated by a scheduled batch job that reads OLAP tables, but classifying that as 'stream processing' is wrong because stream processing implies continuous, low-latency event handling, not scheduled aggregate queries. The scenario is fundamentally about OLTP versus OLAP, not batch versus stream.
When this WOULD be correct
If the question described a system where transactions are collected in batches and processed later (e.g., end-of-day settlement) and reports are generated from a continuous stream of data (e.g., real-time dashboards), then option B would be correct.
- ✗
OLAP for transactions, OLTP for reports
Why it's wrong here
This option inverts the two workload archetypes. OLAP engines, such as columnstore or MPP databases, are designed for full scans and aggregations, so writing individual transactions in real time would introduce unacceptable per-row insert latency and lock contention. OLTP systems enforce ACID transactions and fast indexed lookups, which are ill-suited for scanning millions of historical records to produce nightly reports. The reverse pairing would cripple both the customer-facing transaction path and the reporting workload.
When this WOULD be correct
A question where a system uses OLAP for real-time dashboards on historical data and OLTP for batch updates to a data warehouse would make this option correct.
- ✗
ETL for transactions, ELT for reports
Why it's wrong here
ETL and ELT describe data integration pipeline architectures—how source data is extracted, transformed, and loaded into a warehouse—not the processing workload that runs during the day or at night. A bank might use ETL to populate its nightly OLAP reports, but the transaction system itself is not an ETL process; it is an OLTP application. Choosing ETL/ELT confuses the data movement mechanism with the online/analytical processing paradigm, so it cannot classify how individual customer transactions and batch reports are executed.
When this WOULD be correct
A question asks: 'A data warehouse team extracts data from a source system, transforms it, and loads it into a staging area before moving to the warehouse. Which process does this describe?' Then ETL would be correct.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The DP-900 exam frequently reuses these exact scenarios with slightly different constraints.
✓OLTP for real-time transactions, OLAP for nightly reportsCorrect answer▾
Why this is correct
OLTP systems are optimized for high-concurrency, low-latency row-level inserts and updates, making them the correct engine for real-time balance changes and per-customer transactions. OLAP systems, by contrast, use columnar storage and aggregation-oriented query planning to handle complex analytical queries over large historical datasets, which matches the nightly reporting load. Using OLTP for reports would cause contention with transaction processing, while using OLAP for transactions would suffer from high write latency and poor point-update performance.
✗Batch processing for transactions, Stream processing for reportsWrong answer — click to see why▾
Why this is wrong here
Batch processing is for large volumes of data at scheduled times, not for real-time transactions; stream processing is for continuous data flows, not for nightly aggregated reports.
★ When this WOULD be the correct answer
If the question described a system where transactions are collected in batches and processed later (e.g., end-of-day settlement) and reports are generated from a continuous stream of data (e.g., real-time dashboards), then option B would be correct.
Why candidates choose this
Candidates may confuse 'real-time' with 'stream processing' and 'nightly job' with 'batch processing', not realizing that OLTP/OLAP are the standard terms for transaction and analytical workloads in databases.
✗OLAP for transactions, OLTP for reportsWrong answer — click to see why▾
Why this is wrong here
OLAP is designed for analytical queries on aggregated data, not for real-time transaction processing. OLTP is for transactional workloads, not for nightly summary reports.
★ When this WOULD be the correct answer
A question where a system uses OLAP for real-time dashboards on historical data and OLTP for batch updates to a data warehouse would make this option correct.
Why candidates choose this
Candidates may confuse the terms OLTP and OLAP, or mistakenly think that 'transactions' implies analytical processing and 'reports' implies transactional processing.
✗ETL for transactions, ELT for reportsWrong answer — click to see why▾
Why this is wrong here
ETL and ELT are data integration processes, not processing workloads. The question describes transaction processing (OLTP) and analytical reporting (OLAP), not data extraction, transformation, and loading.
★ When this WOULD be the correct answer
A question asks: 'A data warehouse team extracts data from a source system, transforms it, and loads it into a staging area before moving to the warehouse. Which process does this describe?' Then ETL would be correct.
Why candidates choose this
Candidates may confuse data integration methods (ETL/ELT) with processing types (OLTP/OLAP) because both involve data movement and transformation, leading to a mistaken association with batch and real-time workloads.
Analysis generated from the official DP-900blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
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Related to this question
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Real-Time Analytics on Azure
Key term
OLTP
OLTP (Online Transaction Processing) is a data processing system designed to manage and record high volumes of real-time transactions, such as bank deposits or online purchases, quickly and reliably.
Key term
OLAP
OLAP (Online Analytical Processing) is a computing approach that enables users to quickly and interactively analyze multidimensional data from multiple perspectives for business intelligence and decision support.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This DP-900 practice question is part of Courseiva's free Microsoft 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 DP-900 exam.