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WGU VPC2Data-Driven Decision MakingC207 Sample Questions:

1. What describes fact-based decision-making according to quality management principles?
Choose 2 answers.

A) Decisions have a marginal effect on relationships with suppliers.
B) Decisions foster trust in plans.
C) Decisions reduce external bias.
D) Decisions are based on the instincts of experienced leaders.

2. A financial analyst theorizes that commute times increase as the percentage of land availability for homes in a city decreases. To test this hypothesis, the analyst uses a regression analysis to explore how land availability predicts commute time.
What does land availability represent in this regression?

A) It is the dependent variable.
B) It is the independent variable.
C) It is the target variable.
D) It is a control.

3. A financial analyst theorizes that commute times increase as the percentage of land availability for homes in a city decreases. To test this theory, the analyst uses a regression analysis. Which analysis result is supportive of this analyst's theory?

A) The R-squared value is 0.10.
B) The p-value for the regression coefficient is 1.
C) The p-value for the regression coefficient is 0.50.
D) The R-squared value is 0.90.

4. An analyst used multiple linear regression to show how a big box store's sales (y) are predicted by the big box store's advertising expenditure in dollars (variable x1) and the advertising expenditure in dollars of a specialty store (variable x2) in the same market. The estimated regression is y = 651.57 + 92.30x1 # 26.89x2. How are advertising expenditures and sales related in this scenario?

A) If the big box store decreases its advertising expenditures, its sales will increase.
B) If the specialty store increases its advertising expenditures, it will decrease the big box store's sales.
C) If the big box store decreases its advertising expenditures, it will decrease the big box store's sales.
D) If the big box store increases its advertising expenditures, its sales will decrease.

5. How is a cost-benefit analysis different in the public and private sectors?

A) The public sector usually focuses on the general welfare of the population, whereas the private sector usually focuses on profits.
B) The public sector focuses almost exclusively on cost, while the private sector focuses primarily on benefits.
C) The public sector focuses almost exclusively on benefits, while the private sector focuses primarily on cost.
D) The public sector is governed by tax policy whereas the private sector is incentivized by product pricing.

Solutions: