Data-Driven Decision Making (WGU C207) — Western Governors University — 2025 — Exam Questions with Correct Answers and Explanations

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Data-Driven Decision Making (WGU
C207) — Western Governors
University — 2025 — Exam Questions
with Correct Answers and
Explanations
1. What is the primary purpose of data-driven decision making in a business context?
A. To reduce the need for managerial expertise
B. To make decisions based on intuition and experience
C. To use data analysis to inform strategic choices
D. To eliminate the need for forecasting
Correct Answer: C. To use data analysis to inform strategic choices
Rationale: Data-driven decision making involves using quantitative data to guide
strategic business choices, reducing reliance on intuition and improving objectivity, as
emphasized in WGU’s 2025 curriculum for evidence-based management.
2. A company analyzes sales data and finds a mean monthly revenue of $50,000 with a
standard deviation of $5,000. What is the z-score for a month with $60,000 in
revenue?
A. 1.0
B. 1.5
C. 2.0
D. 2.5
Correct Answer: C. 2.0
Rationale: The z-score is calculated as (X - μ) / σ, where X = $60,000, μ = $50,000, and
σ = $5,000. Thus, z = (60,000 - 50,000) / 5,000 = 10,,000 = 2.0. This indicates the
revenue is 2 standard deviations above the mean.
3. Which statistical measure best describes the central tendency of a dataset with
extreme values?
A. Mean
B. Median
C. Mode
D. Midrange
Correct Answer: B. Median
Rationale: The median is less affected by extreme values than the mean, making it a
better measure of central tendency for skewed datasets, as per standard statistical practice
in business analytics.
4. A manager wants to predict customer churn using historical data. Which analytical
method is most appropriate?
A. Descriptive analytics

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B. Predictive analytics
C. Prescriptive analytics
D. Diagnostic analytics
Correct Answer: B. Predictive analytics
Rationale: Predictive analytics uses historical data to forecast future outcomes, such as
customer churn, by applying models like regression or machine learning, as outlined in
WGU’s 2025 data analytics framework.
5. What is the probability of rolling a 4 on a fair six-sided die?
A. 1/4
B. 1/6
C. 1/3
D. 1/2
Correct Answer: B. 1/6
Rationale: A fair six-sided die has 6 equally likely outcomes. The probability of rolling a
4 is 1 out of 6, or 1/6, based on basic probability theory.
6. A company’s sales data shows a correlation coefficient of 0.85 between advertising
spend and revenue. What does this indicate?
A. No relationship
B. Weak positive relationship
C. Strong positive relationship
D. Strong negative relationship
Correct Answer: C. Strong positive relationship
Rationale: A correlation coefficient of 0.85 indicates a strong positive relationship,
meaning higher advertising spend is associated with higher revenue, per statistical
interpretation standards.
7. Which type of data is best suited for a chi-square test?
A. Continuous data
B. Categorical data
C. Interval data
D. Ratio data
Correct Answer: B. Categorical data
Rationale: The chi-square test analyzes relationships between categorical variables (e.g.,
frequencies in contingency tables), as emphasized in WGU’s statistical curriculum for
2025.
8. A dataset has a mean of 100 and a standard deviation of 15. What is the range of
values within one standard deviation of the mean?
A. 70 to 130
B. 85 to 115
C. 90 to 110
D. 80 to 120
Correct Answer: B. 85 to 115
Rationale: One standard deviation from the mean is calculated as μ ± σ, or 100 ± 15,
resulting in a range of 85 to 115.
9. A business uses a decision tree to evaluate marketing strategies. What is the primary
advantage of this method?
A. It eliminates the need for data collection