WGU C723 PRE-ASSESSMENT - QUANTITATIVE
ANALYSIS FOR BUSINESS (PHFO) QUESTIONS
AND ANSWERS|2025 UPDATE|100% CORRECT.
1. 1 A car stereo company is planning to introduce a new product into the
market. It faces stiff competition from two other organizations with similar
products. The company's marketing manager has asked the production man-
ager to perform a break-even analysis using three different price points. The
marketing manager will use the results to set a price for the new product.
Which type of method is a break-even analysis?
O Expert judgment
O Quantitative
O Qualitative
O Payback table >> ANS >> Quantitative
https://www.stuvia.com/user/Mboffin
, cuz break-even analysis using price points involves numbers
Quantitative or Quantity=Number
2. 2 Over the last three months, a small rural hospital has seen a sudden in-
crease in the number of patients coming to the emergency room for non-emer-
gency treatment. The hospital administrator wants to know why there is a sud-
den increase in demand and is considering three options to find out. Classify
each method available to the administrator as qualitative or quantitative.
Answer options may be used more than once or not at all. Select your answers
from the pull-down list.
Including an open-ended question on the intake form asking patients, "Please
explain why you selected this ER for treatment." Intake forms can be sorted
into non-emergency and emergency categories; the "non-emergency"
responses can be analyzed to determine reasons the hospital was selected =
Qualitative
Pulling the hospital's records for the last 10 years and sorting by medical
codes to check for similar patterns in past years. A regression m >> ANS >>
Qualitative cuz a why you selected question is an opinion.
Qualitative or Quality=Opinion
Quantitative - Pulling data
cuz the question can be counted like 1+2+3+4+5=15.
Quantitative or Quantity=Number
Qualitative - Brainstorming ER visits.
Qualitative or Quality=Opinion
3. 3. A local music store that hosts live music has been a very popular hangout
for years. However, the owner is concerned that the increasing popularity of
https://www.stuvia.com/user/Mboffin
, new methods of music delivery will soon make the business obsolete. The
owner is considering building a small recording studio in the basement of
the store. The nearest professional studio is 50 miles away, so a new studio
may appeal to local musicians and increase foot traffic. The owner has all the
costs of building the studio and has also estimated how much revenue might
increase due to the new studio (from studio rental fees, increased food and
drink sales if more people come to the live music shows, etc.). The owner will
use this information to determine the net present value for the studio.
Which method of analysis should this owner use to make a determination?
O Decision tree
O Expert judgment
O Quantitative
O Qualitative >> ANS >> Quantitative
cuz counting number cost of building, food, drink, etc. Quantitative or Quantity=Num-
ber.
4. 4 How should quantitative analysis improve subsequent decision making
for a firm that wants to determine whether its revenue has been increasing or
decreasing for the past 10 years?
O It will help the company see why it has been making a profit
O It will let the company determine the average revenue it made.
O It will help the company see which customers bought its items.
O It will help the company see the competitors' average revenue. >> ANS >> It
will let the company determine the average revenue it made.
https://www.stuvia.com/user/Mboffin
, cuz revenue is the question to answer
5. 5 An employee working for the Highway Safety Department in Albany, New
York has the job to predict the automobile accidents in Albany for the next
year. The employee currently has monthly data on the following variables for
the city of Albany >> ANS >> the number of automobiles registered, the sales of
alcoholic beverages, and the rainfall in inches.
How can this employee realistically predict the accidents in Albany for next
year?
O Use the ratio of accidents versus each of the other variables and then
average the three values
O Use a multiple regression equation using accident as the dependent vari-
able and others as independent variables
https://www.stuvia.com/user/Mboffin
ANALYSIS FOR BUSINESS (PHFO) QUESTIONS
AND ANSWERS|2025 UPDATE|100% CORRECT.
1. 1 A car stereo company is planning to introduce a new product into the
market. It faces stiff competition from two other organizations with similar
products. The company's marketing manager has asked the production man-
ager to perform a break-even analysis using three different price points. The
marketing manager will use the results to set a price for the new product.
Which type of method is a break-even analysis?
O Expert judgment
O Quantitative
O Qualitative
O Payback table >> ANS >> Quantitative
https://www.stuvia.com/user/Mboffin
, cuz break-even analysis using price points involves numbers
Quantitative or Quantity=Number
2. 2 Over the last three months, a small rural hospital has seen a sudden in-
crease in the number of patients coming to the emergency room for non-emer-
gency treatment. The hospital administrator wants to know why there is a sud-
den increase in demand and is considering three options to find out. Classify
each method available to the administrator as qualitative or quantitative.
Answer options may be used more than once or not at all. Select your answers
from the pull-down list.
Including an open-ended question on the intake form asking patients, "Please
explain why you selected this ER for treatment." Intake forms can be sorted
into non-emergency and emergency categories; the "non-emergency"
responses can be analyzed to determine reasons the hospital was selected =
Qualitative
Pulling the hospital's records for the last 10 years and sorting by medical
codes to check for similar patterns in past years. A regression m >> ANS >>
Qualitative cuz a why you selected question is an opinion.
Qualitative or Quality=Opinion
Quantitative - Pulling data
cuz the question can be counted like 1+2+3+4+5=15.
Quantitative or Quantity=Number
Qualitative - Brainstorming ER visits.
Qualitative or Quality=Opinion
3. 3. A local music store that hosts live music has been a very popular hangout
for years. However, the owner is concerned that the increasing popularity of
https://www.stuvia.com/user/Mboffin
, new methods of music delivery will soon make the business obsolete. The
owner is considering building a small recording studio in the basement of
the store. The nearest professional studio is 50 miles away, so a new studio
may appeal to local musicians and increase foot traffic. The owner has all the
costs of building the studio and has also estimated how much revenue might
increase due to the new studio (from studio rental fees, increased food and
drink sales if more people come to the live music shows, etc.). The owner will
use this information to determine the net present value for the studio.
Which method of analysis should this owner use to make a determination?
O Decision tree
O Expert judgment
O Quantitative
O Qualitative >> ANS >> Quantitative
cuz counting number cost of building, food, drink, etc. Quantitative or Quantity=Num-
ber.
4. 4 How should quantitative analysis improve subsequent decision making
for a firm that wants to determine whether its revenue has been increasing or
decreasing for the past 10 years?
O It will help the company see why it has been making a profit
O It will let the company determine the average revenue it made.
O It will help the company see which customers bought its items.
O It will help the company see the competitors' average revenue. >> ANS >> It
will let the company determine the average revenue it made.
https://www.stuvia.com/user/Mboffin
, cuz revenue is the question to answer
5. 5 An employee working for the Highway Safety Department in Albany, New
York has the job to predict the automobile accidents in Albany for the next
year. The employee currently has monthly data on the following variables for
the city of Albany >> ANS >> the number of automobiles registered, the sales of
alcoholic beverages, and the rainfall in inches.
How can this employee realistically predict the accidents in Albany for next
year?
O Use the ratio of accidents versus each of the other variables and then
average the three values
O Use a multiple regression equation using accident as the dependent vari-
able and others as independent variables
https://www.stuvia.com/user/Mboffin
