100+ Business Analyst Interview Questions & Answers in 2022

Following are frequently asked questions for Business Analyst job interview questions for freshers as well as for the position of a senior business analyst.

1) What is a flowchart? Why it is important?

A Flowchart shows the complete flow of the system through symbols and diagrams. It is important as it makes the system easy to understand for developers as well as nontechnical stakeholders.

2) Define the Use Case Model

Use case model shows a sequence of events and a 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?

As the name implies, an activity diagram is all about system activities. The main purpose of the activity diagram is to show various events taking place in an organization in different departments.

5) Name two types of diagrams used in Business analyst

The two diagrams are Use Case Diagram and Collaboration Diagram

6) 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 unexpected situations or results in an application.

8) What are extends?

Extends is a relationship that is shown by a dotted line. It is usually used to specify optional behavior which has no independent meaning. Example: Help on “Sign on” extends use case “Sign on”

9) Name the two documents related to a use case

The two documents are:

  • FRD (Functional Requirement Document)
  • 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 are the tools which are more helpful to you?

There are many tools, but mostly use the tool are: 1)MS Visio, 2)MS Word, 3)MS Excel, 4)PowerPoint, 5)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) Explain the term INVEST

INVEST means Independent, Negotiable, Valuable, Estimable, Sized Appropriately, Testable. It can assist project managers and technical team in delivering quality products/services.

14) Define SaaS

SaaS means Software as a Service. It is related to cloud computing. It is different from other software bundles as you don’t need this type of software to be installed on your machine. All you need is the 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. A life cycle model is selected based on organizational culture and various other scenarios to develop the system.

17) How can you explain a user-centered design methodology?

It all depends on the end-users. In such a scenario, we develop the system with a user’s point of view. Who are the end-users, what they require etc. Personas are helpful in this process.

18) How do you define Personas?

Personas are used instead of real users that assist developers and technical team in judging the user behavior in different scenarios. Personas are social roles, performed by any actor or character. It is derived from a Latin word meaning “character.” In marketing terminology, it represents a group of customers/end users.

19) Define the term Application Usability

Application usability is 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.

20) What is a 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) Give a full form of OLTP

OLTP stands for On-Line Transaction Processing. Such systems are capable of performing 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) What is 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 a problem or design matrix.

23) What does FMEA stand 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) What is 8-omega?

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, and Technology.

26) What is a misuse case?

It is a term derived from use-case. Unlike use case, a misuse 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 stand 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?

Pareto Analysis is a decision-making technique, also known as the 80/20 rule. It is used for quality control and defect resolution. It explains a 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) What is Agile Manifesto?

Agile Manifesto is a guide for software developers about Agile development principles to ensure iterative solutions.

30) What BPMN stand for?

BPMN is the 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 the flow of interaction, the 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) What are the key areas in a Kano Analysis?

Kano Analysis has three key areas -namely: 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 the group to compare each item with others and select the one having the 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 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 an actor can be depicted in a use-case?

Two types of actors can be depicted in a use-case, viz. 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 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 a dedicated activity to a single person.

40) Differentiate between Fish Model and V Model?

Fish Model V Model
Fish model is comparatively very costly and time-consuming V model requires less time and cost
Fish model is used when there were no ambiguities in the customer’s requirements Otherwise, V 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 the 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 the 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 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, which is used to develop iterative information systems. In this method, a small team works on the assigned tasks for 30 days, usually.

50) What does JAD stand for?

It means Joint Application Development.

51) What is ETL?

Extraction, Transformation, and load is a data processing method mainly used in data warehousing.

52) As a Business Analyst, which method do you prefer more- a waterfall model or a spiral model?

The final decision will be taken depending on the culture of an organizational lifecycle, model for a specific product like waterfall or spiral can be right ascertained.

53) What is the requirement elicitation?

Requirement elicitation helps you to collects information from users and stakeholders. It helps to understand what they want from a system. It is also comprised of various strategies which directly collaborate with the users or clients.

54) What is the Kano Analysis?

Kano Analysis helps you to analyze a system. It helps to identify its impact on customers’ satisfaction.

55) What is Version Control?

Version control is a subset of configuration management. It is mostly concerned with the handling changes arising in the previous document as compared to configuration management, which handles the individual components.

56) Explain Black Box Testing

Black box testing is a kind of testing where the entire unit is tested as a whole without considering the contents or how the inner components and units are tested. This testing method only focuses on the known input signal and check whether the output behavior is according to expectation or not.

57) What is an important quality of a good requirement?

The requirement should be good when it is clear, understandable, and it should be easily verifiable.

58) What Is OOAD?

Object-oriented analysis and designing. It is used in object-oriented coding languages like Java, c++, etc.

59) What is UAT?

UAT is User acceptance testing. If the UAR fails, BA did not understand the requirement properly.

60) How can you measure the quality of a product?

We can measure the quality of a product by checking bugs in the product according to the standard set by the company.

61) What is RAD?

RAD is a development process which is used to build applications in a smaller duration. Generally, 50-70 days i.e., with some compromises.

62) What are the important areas in a Kano Analysis?

Important areas in a Kano analysis are:

  • Unexpected Delighters
  • Performance Attributes
  • Must Have Attributes

63) Why do you like a career as a business analyst?

I like this career because it gives me a great opportunity to involve other people and interacting with them.

64) What do you know about scope creep?

Scope creep is also called requirement creep is a term which means uncontrolled changes in the project’s scope without need to increase in the other resources (schedule, budget) of the project.

65) What are the important skills that a business analyst must have:

  • Problem-solving skills,
  • Management and Communication skills
  • Elicitation skills
  • knowledge of IT skills

66) How can you avoid scope creep?

Scope creep can be avoided in the following method:

  • Documenting the scope of the project.
  • By following proper change management.
  • Informing the effects of the change to the affected parties before making a change.
  • Documenting the new requirements in the project log.

67) Name three best practice you should follow while writing a use case

Important thing you should include are:

  • Use case diagrams along with use case
  • UI details/note in the use case.

68) What is CaaS?

CaaS stands for Communication as a Service. It is outsourced schema interfaction which can be leased from a single Vend over the internet.

69) What is a requirement elicitation technique?

Requirement elicitation is a technique of requirements gathering from users, stakeholders, users, clients by conducting interviews, sessions, brainstorming, etc.

70) What is the major difference between risk and issue?

A risk is a future event which negatively impacts business objective, while the issue is a result of events currently happening.

71) How do you define a Kanban tool in Business analysis process?

It is a tool which helps agile teams to guide and manage work visually as it is progressing through processes. It also helps you to scheduling system in agile just-in-time production to describe the current development status.

72) Name important agile metrics which should be considered by business analysts

Important agile metric to consider should be:

  • The sprint burndown metric
  • Work category allocation
  • The priority of the work
  • Business value delivery
  • Defect resolution time

73) What is meant by an increment in business analysis?

Increment term is used for the sum of all product backlog item, which is completed in the previous spring.

74) How should BA perform risk management for your project?

A risk is an uncertain event which might cause an impact on the revenues and profits of the business. By using various risk management techniques which allows you to manage, identify, and control risks for a business.

75) Name out a different document that can come across to business analyst

The documents that are responsible for being completed as a Business Analyst may include:

  • Scope & Prospect of Project.
  • Fact sheet for constraints
  • Functional Requirements document including UML, Activity, and dataflow diagrams.
  • Testing phase documents along with QA Test requirements, plan, and types of tests.

76) How many categories of business analysis techniques exist?

There are more than 100 business techniques which business analyst can select. It should be categorized as strategic, investigative, project management, documentation, and modeling techniques.

77) What is a misuse case?

Misuse case is an activity performed by a user which causes a system failure. It may be a malicious activity which misguides the system function flow.

78) Which model is better Waterfall model or Spiral Model?

It is selecting the life cycle model for any project which should be based on its scope,type, and limitations. It is dependent on the culture of the organization, their policies and terms, and conditions and a process of developing the system.

79) What is a must for White Box Testing?

It requires programming knowledge and skill to examine the outputs.

80) What is BRD?

A Business Requirement Document is a formal contract between the client and the organization for the development of the specific product.

81) State the important differences between BRD and SRS

The difference between BRD and SRS are as follows:

It is a high-level functional specification of the software. It is a high level functional and technical specification document of the software.
BA creates it after their direct interaction with the clients The System Architect creates it according to their need and technical expertise.
It is derived based on client interaction and requirements. SRS is always derived from the BRS

82) As a business analyst, which subject is more beneficial to you?

Economics is the most important subject for a Business analyst.

83) What is ERD mean?

ERD stands for Entity Relationship Diagram.

84) What is called the movement of information or material from one activity or worksite to another?

It is called workflow.

85) What will employees and systems use to perform important functions?

Knowledge management is a system which is used by employees and systems.

86) Which method is mostly used for assessment or evaluation of a prospective vendor?

In the business analysis process Vendor, Assessment technique is a more fruitful method.

87) What are the important elements of the use case model?

The important elements of the use-case model are use-case diagram and use-case description.

88) What are the four most important metrics in business development?

Storming, forming, Storming, norming, and performing are important metric in business development process.

89) Name important phases of an IT project

Important phases of any IT project are:

  • Initiation
  • Planning
  • Execution
  • Monitoring and control

90) Explain critical path analysis

A project that involved in a set of activities from Start to Finish. A critical path is a set of activities which includes the longest path in the entire project.

91) What is RUP Methodology?

Rational Unified Process, shortly known as (RUP) is a product application improvement method. It is an object-oriented approach used to guarantee successful project management and top-notch software production.

92) What are Project deliverables?

The project deliverables are a set of measurable goods and services that are delivered as an output at the end customer at the completion of the project.

93) List the important advantages of Business process modeling

  • It is used to picture a clear understanding of business processes.
  • It offers consistency, control over the processes of the project.
  • It helps you to identify and removes errors and bottlenecks.

94) What are the important aspects of creating analytical reporting?

An important aspect of creating analytical reporting are:

  • Ability to think critically
  • Understand of business analysis
  • Show your analysis skills.

95) Why is process design important for the Business analyst?

Process design helps you to analyze all the challenges to find an effective solution. This approach helps you to standardize the workflows is important Boosting the same helps you to boost the quality, and businesses can make sure that they help you to get the desired outcome in the shortest possible time.

96) How to define the feasibility study?

The feasibility study is a method of identifying the success rate of a proposed idea for a business problem. It helps you to identify new opportunities and focus more on a project.

97) What is CATWOE in business analysis?

CATWOE stands for Customers, Actors, Transformation process, Worldview, Owners, and Environmental Constraints. This tool helps you get useful insights from the collected data to make the right decisions from the same.

98) Difference between software development lifecycle and project lifecycle

Software development lifecycle Project lifecycle
Helps you to develop particular software products. Allows you to develop a new product in the business.
It involves single software across different phases. It Involves multiple software in a single customer scenario.
SDLC phases are requirement gathering, coding, documentation, operations, and maintenance. Project lifecycle phases are Idea generation, screening, development, testing, and analysis.

99) What are the important elements of BPMN gateway:

The important elements of BPMN gateway are:

  • Flow objects
  • Data connection objects
  • Swimlanes
  • Artifacts

100) What are the members of the Scrum Team?

Scrum Team consists of 1) Product Owner, 2) Scrum Master, and 3) Development Team.

101) Why you should use a spring burndown chart?

A spring burndown chart is a graphic visualization of the rate of progress of current spring. This chart is regularly updated over the course of the sprint.

102) Explain the velocity of a sprint?

Velocity of a sprint is the total work done by the development team is capable of doing over the duration of the sprint. It is agreed upon based on the historical data available about the previous sprint of the project.

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