AKASH AGARWAL

CLASSES
SOLUTION
CMA INTER GROUP 2 TEST SERIES
DATA ANALYTICS MARKS: 20

SOLUTION TO QUESTION 1
(i) Regarding ownership: The first principle is that ownership of any personal information belongs to the
person. It is unlawful and unethical to collect someone’s personal data without their consent. The consent may
be obtained through digital privacy policies or signed agreements or by asking the users to agree with terms
and conditions. It is always advisable to ask for permission beforehand to avoid future legal and ethical
complications. In case of financial data, some data may be sensitive in nature. Prior permission must be
obtained before using the financial data for further analysis.
(ii) Regarding transparency: Maintaining transparency is important while gathering data. The objective with
which the company is collecting user’s data should be known to the user. For example is the company is using
cookies to track the online behaviour of the user, it should be mentioned to the user through a written policy
that cookies would be used for tracking user’s online behaviour and the collected data will be stored in a secure
database to train an algorithm to enhance user experience. After reading the policy, the user may decide to
accept or not to accept the policy. Similarly, while collecting the financial data from clients, it should be clearly
mentioned that for which purpose the data should be used.
(iii) Regarding privacy: As the user may allow to collect, store and analyze the personally identifiable
information (PII), that does not imply it should be made publicly available. For companies, it is mandatory to
publish some financial information to public e.g. through annual reports. However, there may be many
confidential information, which if falls on a wrong hand may create problems and financial loss. To protect
privacy of data, a data security process should be in place. This may include file encryption and dual
authentication password etc. The possibility of breach of data privacy may also be done through de- identifying
a dataset.
(iv) Regarding intention: The intension of data analysis should never be making profits out of others
weaknesses or for hurting others. Collecting data which is unnecessary for analysis should be avoided and it’s
unethical.
(v) Regarding outcomes: In some cases, even if the intentions are good, the result of data analysis may
inadvertently hurt the clients and data providers. This is called disparate impact, which is unethical.

SOLUTION TO QUESTION 2
To make the data turn into user friendly information, it should go through six core steps:
1. Collection of data: The collection of data may be done with standardized systems in place. Appropriate
software and hardware may be used for this purpose. Appointment of trained staff also plays an important role
in collecting accurate and relevant data.
2. Organising the data: The raw data needs to be organized in an appropriate manner to generate relevant
information. The data may be grouped, arranged in a manner that create useful information for the target user
groups.
3. Data processing: At this step, data needs to be cleaned to remove the unnecessary elements. If any data point
is missing or not available, that also need to be addressed. The options available for presentation format for the
data also need to be decided.
4.Integration of data: Data integration is the process of combining data from various sources into a single,
unified form. This step include creation of data network sources, a master server and users accessing the data
from master server. Data integration eventually enables the analytics tools to produce effective, actionable
business intelligence.
5.Data reporting: Data reporting stage involves translating the data into a consumable format to make it
accessible by the users. For example, for a business firm, they should be able to provide summarized financial

Akash Agarwal Classes 8007777042 / 043

information e.g. revenue, net profit etc. The objective is, a user, who wants to understand the financial position
of the company should get the relevant and accurate information.
6.Data utilization: At this ultimate step, data is being utilized to back corporate activities and enhance
operational efficiencies and productivity for the growth of business. This makes the corporate decision making
really ‘data driven’.

SOLUTION TO QUESTION 3
(i)Ordinal Scale: Ordinal scale is being used for classifying and put it in order. The numbers just indicate an
order. They do not specify how much better or worse a stock is at a specific price compared to one with a lower
price. For example, the top 10 stocks by P/E ratio

(ii)Ratio scale: The ratio scale possesses all characteristics of the nominal, ordinal, and interval scales. The
acquired data can not only be classified and rated on a ratio scale, but also have equal intervals. A ratio scale
has a true zero, meaning that zero has a significant value. The genuine zero value on a ratio scale allows for the
magnitude to be described. For example, length, time, mass, money, age, etc. are typical examples of ratio scales.
For data analysis, a ratio scale may be utilised to measure sales, pricing, market share, and client count.

SOLUTION TO QUESTION 4
Large institution takes up digitization projects with meticulous planning and execution. The entire process of
digitization may be segregated into six phases:

Phase 1: Justification of the proposed digitization project

At the very initiation of the digitization project, the accrual benefit of the project needs to be identified. Also
need to compute the cost aspect of the project and the assessment of availability of resources. Risk assessment
is an important part project assessment. For the resources that may be facing quick destruction may be
required an early digitization.
Most importantly, the expected value generation through digitization should be expressed in clear terms.

Phase 2: Assessment
In any institutions, all records are never digitized. The data that requires digitization is to be decided on the
basis of content and context. Some data may be digitized in a consolidated format, and some in detailed format.
The files, tables, documents, expected future use etc are to be accessed and evaluated for the assessment.
The hardware and software requirements for digitization is also assessed at this stage. The human resource
requirement for executing the digitization project is also planned. The risk assessment at this level e.g.
possibilities of natural disasters, and/or cyber attacks etc also need to be completed.

Phase 3: Planning
Successful execution of digitization project needs meticulous planning. There are several stages for planning
e.g. selection of digitization approach, Project documentation, Resources management, Technical specifications,
and Risk management.
The institution may decide to complete the digitization in-house or alternatively by an outsourced agency. It
may also be done on-demand or in batches.

Phase 4: Digitization activities

Upon the completion of assessment and planning phase, the digitization activities start. The Wisconsin
Historical Society developed a six-phase process viz. Planning, Capture, Primary quality control, Editing,
Secondary quality control, and storage and management.
The planning schedule is prepared at the fist stage, calibration of hardware/software and scanning etc is done
next. A primary quality check is done on the output to check the reliability. Cropping, colour correction,
assigning

Phase 5: Processes in the care of records

Once the digitization of records is complete, there are few additional requirements arise which may be linked to
administration of records. The permission for accession of data, intellectual control (over data), classification (if
necessary), and upkeeping and maintenance of data are few additional requirements for data management.

Phase 6: Evaluation

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Once the digitization project is updated and implemented, the final phase should be a systematic determination
of the project’s merit, worth and significant using objective criteria. The primary purpose is to enable reflection
and assist identify changes that would improve future digitization processes.

Akash Agarwal Classes 8007777042 / 043