KPI Development CAIPM Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   Six months after deploying an AI chatbot for customer support, the program manager reviews the KPIs. The original KPI was 'average response time', but the business has shifted focus to customer satisfaction. The chatbot's response time is excellent, but satisfaction scores are low. What should the program manager do?

   • AKeep the same KPIs but lower the target for response time
   • BKeep only response time as the KPI because it is already excellent
   • CRemove all KPIs and start over
   • DAdd customer satisfaction as a primary KPI and keep response time as a secondary KPI
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2. 22expert · hard

   A healthcare insurer is deploying an AI claims denial prediction system. The program manager must select KPIs that measure both the model's technical performance and the business impact. The business objective is to reduce claim processing costs while maintaining provider satisfaction. The model's precision and recall can be tuned, but there is a trade-off: higher recall reduces missed denials but increases false positives, leading to more manual reviews. What is the most appropriate KPI set?

   • ANumber of claims processed and number of denials
   • BCost per claim processed and provider satisfaction score only
   • CPrecision, recall, cost per claim processed, and provider satisfaction score
   • DPrecision and recall only
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4. 23application · easy

   A telecom company is deploying an AI churn prediction model. The program manager needs to set a baseline for the KPI 'customer churn rate'. Historical data shows churn has been 3% monthly for the past year. The model is expected to reduce churn by 10% in the first quarter. What is the most appropriate target?

   • A2.7% monthly churn rate
   • B2.0% monthly churn rate
   • C3.0% monthly churn rate
   • D2.5% monthly churn rate
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5. 24expert · hard

   A software company deployed an AI code review assistant. The original KPIs were 'defect detection rate' and 'developer satisfaction'. After a year, the company's business model shifted from selling software licenses to a subscription model, and the focus moved to 'time-to-market' for new features. The defect detection rate is high, but feature releases are slow. What should the program manager do with the KPI set?

   • AAdd 'time-to-market' as a primary KPI, keep 'defect detection rate' as a secondary KPI, and review 'developer satisfaction' for continued relevance
   • BRemove 'defect detection rate' and keep only 'developer satisfaction'
   • CReplace all KPIs with 'time-to-market' only
   • DKeep the original KPIs unchanged
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6. 25foundation · easy

   Which of the following is a key consideration when designing the measurement method for a KPI?

   • AChoosing a KPI that is easy to calculate even if it is not relevant to the project
   • BDeciding which stakeholders will be responsible for the project's budget
   • CSelecting a target value that is unattainable to motivate the team
   • DIdentifying reliable data sources and determining how often the KPI will be collected
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