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WGU D118 Objective Assessment Final
ACTUAL EXAM 2026/2027 | Version A
Latest | Verified Questions and Answers |
Pass Guaranteed - A+ Graded
DOMAIN 1 – Strategic Analysis & Decision-Making (Questions 1-20)
Scenario for Questions 1-4
NovaTech Solutions, a mid-size SaaS provider, has seen subscription growth slow from 28 % to
6 % YoY. Churn has doubled to 4.5 %/quarter. The board wants a data-driven turnaround plan in
90 days. You lead the cross-functional task-force.
1. The FIRST step to diagnose the root cause of churn should be to:
A. Launch a company-wide cost-cutting program to protect EBITDA
B. Mine product-usage telemetry and compare cohort retention curves for high vs. low
adopters
C. Immediately re-price all tiers by 15 % to boost ARPU
D. Survey only the most recently lost customers about pricing
Correct Answer: B
Rationale: Competency—apply evidence-based diagnostics. Cohort analysis differentiates
whether churn is driven by adoption gaps, value mis-match, or external factors, guiding targeted
interventions. Options A & C treat symptoms; D sample is too narrow.
2. Telemetry shows customers who use <2 of 17 features in first 45 days have 5× higher
churn. The MOST strategic lever is to:
A. Sunset under-used features to reduce support burden
B. Redesign onboarding so every user activates at least 4 features within 30 days
C. Offer a 20 % discount to low adopters
D. Shift marketing spend to channels that acquire power users
Correct Answer: B
Rationale: Strategic leverage principle—move the metric with highest causal impact on outcome.
Forcing activation lifts adoption → retention, whereas discounting or channel shift delays churn
without creating value.
,2
3. Finance projects that every 1 % churn reduction adds $1.2 M ARR. Customer-success can
run personalized outreach (cost $90 K) expected to save 0.8 % churn, or an automated e-
mail sequence (cost $8 K) saving 0.3 %. ROI analysis recommends:
A. Automated sequence; ROI = 45× vs. 10× for outreach
B. Personalized outreach; absolute dollar impact is higher
C. Run both; combined effect is additive
D. Neither; projected savings do not meet 3× cost hurdle
Correct Answer: A
Rationale: Strategic decision rule—allocate scarce resources to highest ROI first. Automated
sequence yields 45× ($360 K ÷ $8 K) and should be scaled before more expensive tactics.
4. Before rolling out the chosen retention play-book globally, the team should:
A. A/B test it on a statistically significant cohort and pre-define success metrics
B. Obtain board approval for the marketing budget
C. Benchmark competitors’ feature sets
D. Update the employee bonus structure
Correct Answer: A
Rationale: Scientific management competency—validate causality under controlled conditions to
avoid costly false positives.
Scenario for Questions 5-8
GreenLoop Logistics operates 1,200 electric delivery vans across the Southwest. Regulators will
credit $8,000 per van for V2G (vehicle-to-grid) capability if installed before 2028. Installation
cost = $5,000 per van; estimated annual energy-trading revenue = $1,400 per van for 5 yrs.
Discount rate = 7 %.
5. The NPV of equipping one van today is closest to:
A. –$1,050
B. $1,783
C. $3,200
D. $8,273
Correct Answer: B
Rationale: NPV = –5 K + 8 K + Σ(1,400÷1.07^t) for t=1-5 ≈ 3 K + 5,735 – 5 K = $1,783. Credits
are received up-front; annuity factor 4.100 → $5,735.
6. Regulatory risk analysis shows a 30 % chance credits drop to $4,000 next year. The
EXPECTED NPV if the company waits 12 months is:
A. Higher than installing today
B. Lower than installing today
C. Roughly equal
D. Cannot be determined without revenue data
, 3
Correct Answer: B
Rationale: Expected credit = 0.7(8 K)+0.3(4 K)=6.8 K; NPV≈ –5 K+6.8 K+PV revenues
discounted one extra year → ~$1,050, lower than today’s $1,783. Time-value plus risk favors
acting now.
7. Which qualitative factor MOST strongly supports immediate adoption?
A. Brand image from sustainability PR
B. First-mover access to limited certified installers
C. Learning-curve advantages in energy-trading operations
D. All of the above
Correct Answer: D
Rationale: Strategic analysis balances quantified NPV with option value, capacity constraints,
and capability building—each item strengthens the FOMC (real-options) argument for
immediacy.
8. To future-proof the decision, GreenLoop should write into the vendor contract:
A. A 10-year price-match clause
B. An option to upgrade bi-directional chargers at pre-set prices
C. Unlimited mileage warranty
D. Government lobbying services
Correct Answer: B
Rationale: Real-options principle—secure flexibility to adapt technology at known cost, reducing
downstream uncertainty.
Scenario for Questions 9-12
DataFlow Cyber Corp is evaluating two market-entry strategies for its new AI threat-intel
platform:
• Direct Sales (DS): Fixed cost $4 M, variable cost $600/unit, price $1,500/unit.
• Channel Partner (CP): Fixed cost $1 M, variable cost $200/unit, price $1,200/unit, but
partner takes 30 % commission on final price.
Expected first-year demand = 8,000 licenses.
9. The break-even volume for the Direct Sales option is:
A. 2,667
B. 4,445
C. 5,000
D. 6,667
Correct Answer: B
Rationale: FC ÷ (Price – VC) = 4 M ÷ (1,500 – 600) ≈ 4,445 units.
WGU D118 Objective Assessment Final
ACTUAL EXAM 2026/2027 | Version A
Latest | Verified Questions and Answers |
Pass Guaranteed - A+ Graded
DOMAIN 1 – Strategic Analysis & Decision-Making (Questions 1-20)
Scenario for Questions 1-4
NovaTech Solutions, a mid-size SaaS provider, has seen subscription growth slow from 28 % to
6 % YoY. Churn has doubled to 4.5 %/quarter. The board wants a data-driven turnaround plan in
90 days. You lead the cross-functional task-force.
1. The FIRST step to diagnose the root cause of churn should be to:
A. Launch a company-wide cost-cutting program to protect EBITDA
B. Mine product-usage telemetry and compare cohort retention curves for high vs. low
adopters
C. Immediately re-price all tiers by 15 % to boost ARPU
D. Survey only the most recently lost customers about pricing
Correct Answer: B
Rationale: Competency—apply evidence-based diagnostics. Cohort analysis differentiates
whether churn is driven by adoption gaps, value mis-match, or external factors, guiding targeted
interventions. Options A & C treat symptoms; D sample is too narrow.
2. Telemetry shows customers who use <2 of 17 features in first 45 days have 5× higher
churn. The MOST strategic lever is to:
A. Sunset under-used features to reduce support burden
B. Redesign onboarding so every user activates at least 4 features within 30 days
C. Offer a 20 % discount to low adopters
D. Shift marketing spend to channels that acquire power users
Correct Answer: B
Rationale: Strategic leverage principle—move the metric with highest causal impact on outcome.
Forcing activation lifts adoption → retention, whereas discounting or channel shift delays churn
without creating value.
,2
3. Finance projects that every 1 % churn reduction adds $1.2 M ARR. Customer-success can
run personalized outreach (cost $90 K) expected to save 0.8 % churn, or an automated e-
mail sequence (cost $8 K) saving 0.3 %. ROI analysis recommends:
A. Automated sequence; ROI = 45× vs. 10× for outreach
B. Personalized outreach; absolute dollar impact is higher
C. Run both; combined effect is additive
D. Neither; projected savings do not meet 3× cost hurdle
Correct Answer: A
Rationale: Strategic decision rule—allocate scarce resources to highest ROI first. Automated
sequence yields 45× ($360 K ÷ $8 K) and should be scaled before more expensive tactics.
4. Before rolling out the chosen retention play-book globally, the team should:
A. A/B test it on a statistically significant cohort and pre-define success metrics
B. Obtain board approval for the marketing budget
C. Benchmark competitors’ feature sets
D. Update the employee bonus structure
Correct Answer: A
Rationale: Scientific management competency—validate causality under controlled conditions to
avoid costly false positives.
Scenario for Questions 5-8
GreenLoop Logistics operates 1,200 electric delivery vans across the Southwest. Regulators will
credit $8,000 per van for V2G (vehicle-to-grid) capability if installed before 2028. Installation
cost = $5,000 per van; estimated annual energy-trading revenue = $1,400 per van for 5 yrs.
Discount rate = 7 %.
5. The NPV of equipping one van today is closest to:
A. –$1,050
B. $1,783
C. $3,200
D. $8,273
Correct Answer: B
Rationale: NPV = –5 K + 8 K + Σ(1,400÷1.07^t) for t=1-5 ≈ 3 K + 5,735 – 5 K = $1,783. Credits
are received up-front; annuity factor 4.100 → $5,735.
6. Regulatory risk analysis shows a 30 % chance credits drop to $4,000 next year. The
EXPECTED NPV if the company waits 12 months is:
A. Higher than installing today
B. Lower than installing today
C. Roughly equal
D. Cannot be determined without revenue data
, 3
Correct Answer: B
Rationale: Expected credit = 0.7(8 K)+0.3(4 K)=6.8 K; NPV≈ –5 K+6.8 K+PV revenues
discounted one extra year → ~$1,050, lower than today’s $1,783. Time-value plus risk favors
acting now.
7. Which qualitative factor MOST strongly supports immediate adoption?
A. Brand image from sustainability PR
B. First-mover access to limited certified installers
C. Learning-curve advantages in energy-trading operations
D. All of the above
Correct Answer: D
Rationale: Strategic analysis balances quantified NPV with option value, capacity constraints,
and capability building—each item strengthens the FOMC (real-options) argument for
immediacy.
8. To future-proof the decision, GreenLoop should write into the vendor contract:
A. A 10-year price-match clause
B. An option to upgrade bi-directional chargers at pre-set prices
C. Unlimited mileage warranty
D. Government lobbying services
Correct Answer: B
Rationale: Real-options principle—secure flexibility to adapt technology at known cost, reducing
downstream uncertainty.
Scenario for Questions 9-12
DataFlow Cyber Corp is evaluating two market-entry strategies for its new AI threat-intel
platform:
• Direct Sales (DS): Fixed cost $4 M, variable cost $600/unit, price $1,500/unit.
• Channel Partner (CP): Fixed cost $1 M, variable cost $200/unit, price $1,200/unit, but
partner takes 30 % commission on final price.
Expected first-year demand = 8,000 licenses.
9. The break-even volume for the Direct Sales option is:
A. 2,667
B. 4,445
C. 5,000
D. 6,667
Correct Answer: B
Rationale: FC ÷ (Price – VC) = 4 M ÷ (1,500 – 600) ≈ 4,445 units.
