Master Data is similar to a physical product produced and sold by a company except for which of the
following characteristics?
D
Explanation:
Master Data, similar to a physical product, must meet certain requirements such as fitting
consumers' needs, needing information about its characteristics, impacting business when
unavailable, and having a useful lifespan. However, unlike physical products, Master Data does not
deplete when pulled from inventory. Master Data remains available for use even after being
accessed multiple times, as it is digital information that can be replicated and shared without loss.
Reference:
DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition), Chapter 11: Reference and
Master Data Management.
"Master Data Management and Data Governance" by Alex Berson and Larry Dubov.
Which of the following Is a characteristic of a probabilistic matching algorithm?
D
Explanation:
Probabilistic matching algorithms assign a score based on the weight and degree of match, assign
weights to variables based on their discriminating power, and use individual attribute matching
scores to create a match probability percentage. Additionally, after the matching process, some
records typically require manual review and decisioning to ensure accuracy. Therefore, all provided
characteristics describe the nature of probabilistic matching algorithms accurately.
Reference:
DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition), Chapter 11: Reference and
Master Data Management.
"Master Data Management and Data Governance" by Alex Berson and Larry Dubov
The ISO definition of Master Data quality is which of the following?
D
Explanation:
The ISO definition of Master Data quality focuses on the degree to which the data's characteristics
meet the requirements of individual users. This implies that quality is subjective and depends on
whether the data is suitable and adequate for its intended purpose, fulfilling the specific needs of its
users.
Reference:
ISO 8000-8:2015 - Data quality — Part 8: Information and data quality: Concepts and measuring.
DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition), Chapter 13: Data Quality
Management.
Where is the most time/energy typically spent tor any MDM effort?
C
Explanation:
In any Master Data Management (MDM) effort, the most time and energy are typically spent on
vetting business entities and data attributes through the Data Governance process. This step ensures
that the data is accurate, consistent, and adheres to defined standards and policies. It involves
significant collaboration and decision-making among stakeholders to validate and approve the data
elements to be managed.
Reference:
DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition), Chapter 11: Reference and
Master Data Management.
"Master Data Management and Data Governance" by Alex Berson and Larry Dubov.
Can Reference data be used for financial trading?
E
Explanation:
Reference data plays a crucial role in financial trading. It includes data such as financial instrument
identifiers, market data, currency codes, and regulatory classifications. Despite the dynamic nature
of financial trades, reference data provides the necessary static information to execute and settle
transactions. Industry estimates suggest that approximately 70% of the data used in financial
transactions is reference data, underscoring its importance in the financial sector.
Reference:
DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition), Chapter 11: Reference and
Master Data Management.
"The Data Warehouse Toolkit: The Definitive Guide to Dimensional Modeling" by Ralph Kimball and
Margy Ross.
Industry publications and whitepapers on reference data management in financial services.
ISO 8000 is a Master Data international standard tor what purpose?
D
Explanation:
ISO 8000 is an international standard focused on data quality and information exchange. Its primary
purpose is to define and measure the quality of data, ensuring that it meets the requirements for
completeness, accuracy, and consistency. The standard provides guidelines for data quality
management, including requirements for data governance, data quality metrics, and procedures for
improving data quality over time. ISO 8000 is not meant to replace ISO 9000, which is focused on
quality management systems, but to complement it by addressing data quality specifically.
Reference:
ISO 8000: Overview and Benefits of ISO 8000, International Organization for Standardization (ISO)
DAMA-DMBOK2 Guide: Chapter 12 – Data Quality Management
An organization chart where a high level manager has department managers with staff and non-
managers without staff as direct reports would best be maintained in which of the following?
B
Explanation:
A ragged hierarchy is an organizational structure where different branches of the hierarchy can have
varying levels of depth. This means that not all branches have the same number of levels. In the
given scenario, where a high-level manager has department managers with staff and non-managers
without staff as direct reports, the hierarchy does not have a uniform depth across all branches. This
kind of structure is best represented and maintained as a ragged hierarchy, which allows for flexibility
in representing varying levels of managerial relationships and reporting structures.
Reference:
DAMA-DMBOK2 Guide: Chapter 7 – Data Architecture Management
"Master Data Management and Data Governance" by Alex Berson, Larry Dubov
Matching or candidate identification is the process called similarity analysis. One approach is called
deterministic which relies on:
D
Explanation:
Deterministic matching, also known as exact matching, relies on predefined rules and algorithms to
parse and standardize data, ensuring that records are compared based on exact or standardized
values. This approach uses defined patterns and rules to determine whether two records represent
the same entity by matching key attributes exactly. Deterministic matching is precise and
unambiguous, making it a common approach for high-certainty matching tasks, although it can be
less flexible than probabilistic methods that allow for variations in data.
Reference:
DAMA-DMBOK2 Guide: Chapter 10 – Master and Reference Data Management
"Entity Resolution and Information Quality" by John R. Talburt
What statement is NOT correct as a key point of a MDM program?
E
Explanation:
A key point of a Master Data Management (MDM) program is that it must adapt and evolve over
time. The statement that an MDM program "can be effectively created and managed long-term using
the same methodology" is not correct. MDM programs must continually evolve to address new data
sources, changing business requirements, and advancements in technology. As data inventory grows
and the data landscape changes, MDM methodologies and strategies need to be reassessed and
updated to remain effective. This adaptability is crucial for maintaining data quality and relevance.
Reference:
DAMA-DMBOK2 Guide: Chapter 10 – Master and Reference Data Management
"Master Data Management and Data Governance" by Alex Berson, Larry Dubov
Taxonomic Reference Data enable which of the following?
A
Explanation:
Taxonomic reference data involves categorizing and organizing data to enable structured access and
retrieval. It facilitates content classification, allowing for efficient multi-level navigation, which is
essential for Business Intelligence (BI) activities. By organizing data into a taxonomy, users can easily
locate and analyze information, supporting better decision-making processes in BI.
Reference:
DMBOK (Data Management Body of Knowledge), 2nd Edition, Chapter 11: Reference & Master Data
Management.
DAMA-DMBOK Functional Framework, Function: Reference & Master Data Management.