Data Driven Decision Making WGU C207 Exam Questions with Verified Solutions Latest 2025 Rated A+
How would a greater number of samples and a fewer number of populations affect an ANOVA analysis?
- Answers The results would be more accurate.
Mary is determining the likelihood that she will lose money on an investment. There is an expected 10
percent gain in a normally distributed dataset, with a standard deviation of 10 percent. The likelihood
she'll lose money is _______ percent. - Answers 16
Select the choice that is true. Regression analysis: - Answers takes information from one data set and
can predict information for another data set.
Jane works for a public health company. She is working on an anti-tobacco campaign and is interested in
how smoking cigarettes affects a smoker's cholesterol. She could use the number of cigarettes smoked
per day as her _____ variable and place it on the __-axis. - Answers independent, x
We perform a regression analysis on a pair of variables and determine that there is a linear relationship.
The regression line is determined to be y=12x−5y=12x-5. What type of linear relationship exists between
the independent variable, x, and the dependent variable, y? - Answers positive
describe R-squared? - Answers a) R-squared measures the goodness of fit.
b) R-squared can be misleading if there are false independent variables.
c) R-squared is 1.0 when correlation is -1 or 1.
Which of the following are technique a manager uses when forecasting? - Answers A)Time Series
c) Associative
d) Judgmental
Which of the following are advantages of cluster analysis? - Answers b) It sorts individual data points
into different groups.
c) It will not help in determining target markets.
d) It does not identify successful and unsuccessful habits and systems.
A trend is... - Answers a general slope upward or downward over a long period of time.
If there is a relationship between variables, but the relationship is not linear, what possible challenge
with regression could it be? - Answers Polynomial Regression
Catherine is trying to sell a ticket to the Super Bowl. She is determining whether or not she should sell a
ticket now or wait until just before the game and try and sell it then. Currently, someone is offering $350
for the ticket. From research of past prices, she knows that the tickets immediately before the Super
Bowl are sold for about $500. She determines that there is a 75 percent chance she will be able to sell
,the ticket immediately before the Super Bowl. Based on expected payoffs from risk decision making,
what should she do? How much is the difference if she chooses to sell now - Answers Catherine should
wait to sell ticket; the difference will be $25.
Heteroscedasticity - Answers A regression in which the variances in y for the values of x are not equal
Cumulative Average-Time Learning Model - Answers A learning curve model in which the cumulative
average time per unit declines by a constant percentage each time the cumulative quantity of units
produced is doubled
Dependent Variable - Answers The variable whose value depends on one or more variables in the
equation; typically the cost or activity to be predicted
Independent Variable - Answers The variable presumed to influence another variable (dependent
variable); typically it is the level of activity or cost driver
Analysis of Variance (ANOVA) - Answers A statistical method that helps identify the sources of variability
by comparing their means or averages; it compares the variation within a sample to the variation
between samples to see if any differences are the result of some contributing factor or if the differences
occur by chance alon
Experience Curve - Answers A curve that shows the decline in cost per unit in various business functions
of the value chain as the amount of these activities increases
Crossover Analysis - Answers Allows a decision maker to identify the crossover point, which represents
the point at which we are indifferent between the plans
Cyclicality - Answers Repetition of up (peaks) or down movements (troughs) that follow or counteract a
business cycle that can last several years
Linear Programming - Answers A mathematical tool used to optimize a function (the objective function)
subject to various constraints, all of which are linear. Often used to find the combination of products
that will maximize profits or minimize costs
Simple Linear Regression - Answers A form of regression analysis with only one independent variable
Regression Line - Answers the "line of best fit" where the margin of error at every point is minimized
Data Management - Answers The management, including cleaning and storage, of collected data
Random Variation - Answers The variability of a process which might be caused by irregular fluctuations
due to chance that cannot be anticipated, detected, or eliminated
Seasonality - Answers Regular pattern of volatility, usually within a single year
Homoscedasticity - Answers A regression in which the variances in y for the values of x are equal or close
to equal
, Irregularity - Answers One-time deviations from expectations caused by unforeseen circumstances such
as war, natural disasters, poor weather, labor strikes, single-occurrence company-specific surprises or
macroeconomic shocks
Chi-squared Test - Answers A hypothesis test that is used to examine the distribution of categorical data
Expected Value - Answers The Expected Value for an alternative is the sum of all possible payoffs for
that alternative, each weighted by the probability of that payoff occurring
Multiple Linear Regression - Answers A statistical method used to model the relationship between one
dependent (or response) variable and two or more independent (or explanatory) variables by fitting a
linear equation to observed data
Regression Analysis - Answers A statistical analysis tool that quantifies the relationship between a
dependent variable and one or more independent variables
Decision Tree - Answers A diagram of possible alternatives and their expected consequences used to
formulate possible courses of actions in order to make decisions
Time Series Analysis - Answers Regression analysis that uses time as the independent variable
Expected Value - Answers The Expected Value for an alternative is the sum of all possible payoffs for
that alternative, each weighted by the probability of that payoff occurring.
R-squared - Answers The measure of 1) "goodness of fit" of the regression line, 2) strength of the
relationship, and 3) the percentage of variation in the dependent variable that is explained by the
independent variable
Autocorrelation - Answers A relationship between two variables that is inherently non-linear
Cluster Analysis - Answers The process of arranging terms or values based on different variables into
"natural" groups
Outlier - Answers An observation point that is significantly distant from the other observations in the
dataset
Standard Error (SE) of Estimate - Answers The "average" deviation of the data points from the regression
line or curve
A SIPOC diagram helps you manage quality in which of the following ways? - Answers It helps you
understand how process elements fit together.
Your quality management processes should monitor _______ - Answers both the products you make
and the processes you use to make them
Statistical process control relies on _________ to analyze results. - Answers metrics
How would a greater number of samples and a fewer number of populations affect an ANOVA analysis?
- Answers The results would be more accurate.
Mary is determining the likelihood that she will lose money on an investment. There is an expected 10
percent gain in a normally distributed dataset, with a standard deviation of 10 percent. The likelihood
she'll lose money is _______ percent. - Answers 16
Select the choice that is true. Regression analysis: - Answers takes information from one data set and
can predict information for another data set.
Jane works for a public health company. She is working on an anti-tobacco campaign and is interested in
how smoking cigarettes affects a smoker's cholesterol. She could use the number of cigarettes smoked
per day as her _____ variable and place it on the __-axis. - Answers independent, x
We perform a regression analysis on a pair of variables and determine that there is a linear relationship.
The regression line is determined to be y=12x−5y=12x-5. What type of linear relationship exists between
the independent variable, x, and the dependent variable, y? - Answers positive
describe R-squared? - Answers a) R-squared measures the goodness of fit.
b) R-squared can be misleading if there are false independent variables.
c) R-squared is 1.0 when correlation is -1 or 1.
Which of the following are technique a manager uses when forecasting? - Answers A)Time Series
c) Associative
d) Judgmental
Which of the following are advantages of cluster analysis? - Answers b) It sorts individual data points
into different groups.
c) It will not help in determining target markets.
d) It does not identify successful and unsuccessful habits and systems.
A trend is... - Answers a general slope upward or downward over a long period of time.
If there is a relationship between variables, but the relationship is not linear, what possible challenge
with regression could it be? - Answers Polynomial Regression
Catherine is trying to sell a ticket to the Super Bowl. She is determining whether or not she should sell a
ticket now or wait until just before the game and try and sell it then. Currently, someone is offering $350
for the ticket. From research of past prices, she knows that the tickets immediately before the Super
Bowl are sold for about $500. She determines that there is a 75 percent chance she will be able to sell
,the ticket immediately before the Super Bowl. Based on expected payoffs from risk decision making,
what should she do? How much is the difference if she chooses to sell now - Answers Catherine should
wait to sell ticket; the difference will be $25.
Heteroscedasticity - Answers A regression in which the variances in y for the values of x are not equal
Cumulative Average-Time Learning Model - Answers A learning curve model in which the cumulative
average time per unit declines by a constant percentage each time the cumulative quantity of units
produced is doubled
Dependent Variable - Answers The variable whose value depends on one or more variables in the
equation; typically the cost or activity to be predicted
Independent Variable - Answers The variable presumed to influence another variable (dependent
variable); typically it is the level of activity or cost driver
Analysis of Variance (ANOVA) - Answers A statistical method that helps identify the sources of variability
by comparing their means or averages; it compares the variation within a sample to the variation
between samples to see if any differences are the result of some contributing factor or if the differences
occur by chance alon
Experience Curve - Answers A curve that shows the decline in cost per unit in various business functions
of the value chain as the amount of these activities increases
Crossover Analysis - Answers Allows a decision maker to identify the crossover point, which represents
the point at which we are indifferent between the plans
Cyclicality - Answers Repetition of up (peaks) or down movements (troughs) that follow or counteract a
business cycle that can last several years
Linear Programming - Answers A mathematical tool used to optimize a function (the objective function)
subject to various constraints, all of which are linear. Often used to find the combination of products
that will maximize profits or minimize costs
Simple Linear Regression - Answers A form of regression analysis with only one independent variable
Regression Line - Answers the "line of best fit" where the margin of error at every point is minimized
Data Management - Answers The management, including cleaning and storage, of collected data
Random Variation - Answers The variability of a process which might be caused by irregular fluctuations
due to chance that cannot be anticipated, detected, or eliminated
Seasonality - Answers Regular pattern of volatility, usually within a single year
Homoscedasticity - Answers A regression in which the variances in y for the values of x are equal or close
to equal
, Irregularity - Answers One-time deviations from expectations caused by unforeseen circumstances such
as war, natural disasters, poor weather, labor strikes, single-occurrence company-specific surprises or
macroeconomic shocks
Chi-squared Test - Answers A hypothesis test that is used to examine the distribution of categorical data
Expected Value - Answers The Expected Value for an alternative is the sum of all possible payoffs for
that alternative, each weighted by the probability of that payoff occurring
Multiple Linear Regression - Answers A statistical method used to model the relationship between one
dependent (or response) variable and two or more independent (or explanatory) variables by fitting a
linear equation to observed data
Regression Analysis - Answers A statistical analysis tool that quantifies the relationship between a
dependent variable and one or more independent variables
Decision Tree - Answers A diagram of possible alternatives and their expected consequences used to
formulate possible courses of actions in order to make decisions
Time Series Analysis - Answers Regression analysis that uses time as the independent variable
Expected Value - Answers The Expected Value for an alternative is the sum of all possible payoffs for
that alternative, each weighted by the probability of that payoff occurring.
R-squared - Answers The measure of 1) "goodness of fit" of the regression line, 2) strength of the
relationship, and 3) the percentage of variation in the dependent variable that is explained by the
independent variable
Autocorrelation - Answers A relationship between two variables that is inherently non-linear
Cluster Analysis - Answers The process of arranging terms or values based on different variables into
"natural" groups
Outlier - Answers An observation point that is significantly distant from the other observations in the
dataset
Standard Error (SE) of Estimate - Answers The "average" deviation of the data points from the regression
line or curve
A SIPOC diagram helps you manage quality in which of the following ways? - Answers It helps you
understand how process elements fit together.
Your quality management processes should monitor _______ - Answers both the products you make
and the processes you use to make them
Statistical process control relies on _________ to analyze results. - Answers metrics
