C723 QUANTITATIVE ANALYSIS FOR BUSINESS Q&A
OVERVIEW WGU 2025 WITH CORRECT ANSWERS | VERIFIED
SOLUTIONS.
1. A car stereo company is planning to introduce a new item into the market. It faces stiff
competition from two other organization with similar items. The company’s advertising
manager has asked the item ion manager to perform a break-even evaluation using three
different price points. The advertising manager will use the results to set a price for the
new item.
Which type of method is a break-even evaluation?
YOUR CORRECT
SOLUTION SOLUTION
Quantitative
Qualitative
Payback table
Expert judgment
2. Over the last three months, a small rural hospital has seen a sudden increase in the number of
patients coming to the emergency room for non-emergency treatment. The hospital
administrator wants to know why there is a sudden increase in demand and is considering three
options to find out.
Classify each method available to the administrator as qualitative or quantitative.
solution options may be used more than once or not at all. Select your solutions from the pull-
down list.
Including an open-ended treatment.” Intake forms can be sorted
question on the intake into non- emergency and emergency
form asking patients, categories; the “non-emergency”
“Please explain why you responses can be analyzed to
selected this ER for determine reasons the hospital was
,selected. Qualitative Qualitative
Group brainstorming Qualitative Qualitative
with the nurses and
doctors in the hospital to
see what ideas people
have for why so many
people are suddenly
coming to the ER for non-
emergency treatment.
Pulling the hospital’s Quantitative Quantitative
records for the last 10
years and sorting by
medical codes to check
for similar patterns in
past years. A regression
model can be built using
non-emergency
treatments as the
dependent variable, and
various independent
variables can be tested,
such as population
change and
unemployment levels.
,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 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 also estimated how much income 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 net present outcome for the studio.
Which method of evaluation should this owner use to make a determination?
Qualitative
Quantitative
Choice tree Expert
judgment
4. How should quantitative evaluation improve subsequent choice making for a firm that wants
to determine whether its income has been increasing or decreasing for the past 10 years?
YOUR CORRECT
SOLUTION SOLUTION
It will let the company determine the average income it made.
It will help the company see which clients bought its items.
It will help the company see why it has been making a profit.
It will help the company see the competitors’ average income.
Page 3 of 53
, 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
information on the following variables for the city of Albany: 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?
Use a multiple regression equation using accident as the
dependent variable and others as independent variables
Use a multiple regression equation using automobiles registered
as the dependent variable and others as independent variables
Use the ratio of accidents versus each of the other variables and
then average the three outcomes
Use the sales of alcoholic beverages because the other variables
are less significant
6. A advertising manager for a corporation that markets a broad range of food brands needs to plan
a monthly advertising, advertising, and sales promotion budget for next year and is looking at
monthly sales. One brand shows dramatic fluctuations in sales over the past three years.
How should this manager use quantitative evaluation to make budgeting choices for this brand?
Use average sales outcomes for all of the months over the past
two years
Use last year’s budget amounts regardless of average sales
outcomes Compute quarterly averages based on each month in
the quarter
Compute seasonality indices for each month to forecast next
year’s monthly sales
Page 4 of 53
OVERVIEW WGU 2025 WITH CORRECT ANSWERS | VERIFIED
SOLUTIONS.
1. A car stereo company is planning to introduce a new item into the market. It faces stiff
competition from two other organization with similar items. The company’s advertising
manager has asked the item ion manager to perform a break-even evaluation using three
different price points. The advertising manager will use the results to set a price for the
new item.
Which type of method is a break-even evaluation?
YOUR CORRECT
SOLUTION SOLUTION
Quantitative
Qualitative
Payback table
Expert judgment
2. Over the last three months, a small rural hospital has seen a sudden increase in the number of
patients coming to the emergency room for non-emergency treatment. The hospital
administrator wants to know why there is a sudden increase in demand and is considering three
options to find out.
Classify each method available to the administrator as qualitative or quantitative.
solution options may be used more than once or not at all. Select your solutions from the pull-
down list.
Including an open-ended treatment.” Intake forms can be sorted
question on the intake into non- emergency and emergency
form asking patients, categories; the “non-emergency”
“Please explain why you responses can be analyzed to
selected this ER for determine reasons the hospital was
,selected. Qualitative Qualitative
Group brainstorming Qualitative Qualitative
with the nurses and
doctors in the hospital to
see what ideas people
have for why so many
people are suddenly
coming to the ER for non-
emergency treatment.
Pulling the hospital’s Quantitative Quantitative
records for the last 10
years and sorting by
medical codes to check
for similar patterns in
past years. A regression
model can be built using
non-emergency
treatments as the
dependent variable, and
various independent
variables can be tested,
such as population
change and
unemployment levels.
,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 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 also estimated how much income 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 net present outcome for the studio.
Which method of evaluation should this owner use to make a determination?
Qualitative
Quantitative
Choice tree Expert
judgment
4. How should quantitative evaluation improve subsequent choice making for a firm that wants
to determine whether its income has been increasing or decreasing for the past 10 years?
YOUR CORRECT
SOLUTION SOLUTION
It will let the company determine the average income it made.
It will help the company see which clients bought its items.
It will help the company see why it has been making a profit.
It will help the company see the competitors’ average income.
Page 3 of 53
, 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
information on the following variables for the city of Albany: 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?
Use a multiple regression equation using accident as the
dependent variable and others as independent variables
Use a multiple regression equation using automobiles registered
as the dependent variable and others as independent variables
Use the ratio of accidents versus each of the other variables and
then average the three outcomes
Use the sales of alcoholic beverages because the other variables
are less significant
6. A advertising manager for a corporation that markets a broad range of food brands needs to plan
a monthly advertising, advertising, and sales promotion budget for next year and is looking at
monthly sales. One brand shows dramatic fluctuations in sales over the past three years.
How should this manager use quantitative evaluation to make budgeting choices for this brand?
Use average sales outcomes for all of the months over the past
two years
Use last year’s budget amounts regardless of average sales
outcomes Compute quarterly averages based on each month in
the quarter
Compute seasonality indices for each month to forecast next
year’s monthly sales
Page 4 of 53
