WGU MBA C207 DATA DRIVEN DECISION MAKING EXAM
2025/2026 QUESTIONS WITH SOLUTION GRADED A+
✔✔Davenport Kim Three Stage Model - ✔✔A decision making model developed by
Thomas Davenport and Jinho Kim that consists of three stages: framing the problem,
solving the problem, and communicating results
✔✔Dependent Variable - ✔✔The variable whose value depends on one or more
variables in the equation; typically the cost or activity to be predicted
✔✔Detractor - ✔✔A category of customer used in the calculation of the Net Promoter
Score that indicates an unhappy customer.
✔✔Discrete Data - ✔✔Data that can only take on whole values and has clear
boundaries
✔✔Double Blind Study - ✔✔A study performed where neither the treatment allocator
nor the participant knows which group the participant is in
✔✔Epidemiology - ✔✔study of the incidence, distribution and possible control of
diseases and other factors relating to health
✔✔Event - ✔✔An outcome that occurs
✔✔Experience Curve - ✔✔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
✔✔Heteroscedasticity - ✔✔A regression in which the variances in y for the values of x
are not equal
✔✔Histogram - ✔✔A graph that displays continuous data. This type of graph has
vertical bars that show the counts or numbers in each range of data. A vertical bar chart
that shows the distribution of data across groups or categories.
✔✔Homoscedasticity - ✔✔A regression in which the variances in y for the values of x
are equal or close to equal
✔✔Hypothesis - ✔✔A proposed explanation used as a starting point for future
examination
✔✔Impact (RBM stage) - ✔✔last step when applying results-based management is to
study the long-term effects that the output will have (economic, environmental, cultural,
or political change)
,✔✔Incidence - ✔✔measures the number of new cases that arise in a population over
the course of a designated time period
# new cases / person-time units
✔✔Incremental Unit-Time Learning Model - ✔✔A learning curve model in which the
incremental unit time (the time needed to produce the last unit) declines by a constant
percentage each time the cumulative quantity of units produced is doubled
✔✔Independent Variable - ✔✔The variable presumed to influence another variable
(dependent variable); typically it is the level of activity or cost driver
✔✔Information Bias - ✔✔A prejudice in the data that results when either the respondent
or the interviewer has an agenda and is not presenting impartial questions or
responding with truly honest responses, respectively
✔✔Input (RBM stage) - ✔✔the first step of RBM is to define the resources, human or
financial, used by the RBM system (people, funds, information)
✔✔Interquartile range - ✔✔The difference, in value, between the bottom and top 25
percent of the sample or population
✔✔Interval Data - ✔✔Data that is ordered within a range and with each data point being
an equal interval apart
✔✔Item Response Theory (IRT) - ✔✔model of designing, analyzing and scoring tests
✔✔Key Performance Indicator (KPI) - ✔✔A performance measurement that
organizations use to quantify their level of success.
✔✔Laspeyres Index - ✔✔a comparison of the same quantity of goods with the same
weight over a period of time
✔✔Line graph - ✔✔A graph that illustrates relationships between two changing
variables with a line or curve that connects a series of successive data points
✔✔Lower limit control - ✔✔The minimum value on a control chart that a process should
not exceed
✔✔Mean - ✔✔An average, calculated by adding a series of elements in a data set
together and dividing by the total number in the series
✔✔Measurement Bias - ✔✔A prejudice in the data that results when the sample is not
representative of the population being tested
, ✔✔Median - ✔✔The value or quantity lying at the midpoint of a frequency distribution
✔✔Mode - ✔✔the value that appears most often in a set of data
✔✔Multicollinearity - ✔✔A multiple regression equation is flawed because two variables
thought to be independent are actually correlated to be independent
✔✔Multiple Linear Regression - ✔✔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
✔✔Multiplication Principle - ✔✔When the probabilities of multiple events are multiplied
together to determine the likelihood of all of those events occurring
✔✔Mutually exclusive events - ✔✔When two or more events are not able to occur at the
same time
✔✔Nominal Data - ✔✔Sometimes called categorical data or qualitative data, this data
type is used to label subjects or data by name
Data quality issues from misspelled data or missing data
✔✔Non parametric test - ✔✔A test that does not assume there to be a structure (may
be a normal distribution) to the population.
✔✔Norm-referenced test - ✔✔compare an individual to other individuals
✔✔Normal distribution - ✔✔data tending to occur around a central value with no bias
right or left
✔✔Null hypothesis - ✔✔The argument that there is no difference between two samples
or that a sample has not changed over time
✔✔Omission Error - ✔✔An error because something (for example, data or survey
response) is missing.
✔✔Operating Income - ✔✔Earnings before Interest and Taxes.
✔✔Ordinal Data - ✔✔Data that places data objects into an order according to some
quality with higher order indicating more of that quality
✔✔Outcome (RBM stage) - ✔✔the short-term effect that the outputs will have (greater
efficiency, more viability, better decision making, social action, or changed public
opinion)
2025/2026 QUESTIONS WITH SOLUTION GRADED A+
✔✔Davenport Kim Three Stage Model - ✔✔A decision making model developed by
Thomas Davenport and Jinho Kim that consists of three stages: framing the problem,
solving the problem, and communicating results
✔✔Dependent Variable - ✔✔The variable whose value depends on one or more
variables in the equation; typically the cost or activity to be predicted
✔✔Detractor - ✔✔A category of customer used in the calculation of the Net Promoter
Score that indicates an unhappy customer.
✔✔Discrete Data - ✔✔Data that can only take on whole values and has clear
boundaries
✔✔Double Blind Study - ✔✔A study performed where neither the treatment allocator
nor the participant knows which group the participant is in
✔✔Epidemiology - ✔✔study of the incidence, distribution and possible control of
diseases and other factors relating to health
✔✔Event - ✔✔An outcome that occurs
✔✔Experience Curve - ✔✔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
✔✔Heteroscedasticity - ✔✔A regression in which the variances in y for the values of x
are not equal
✔✔Histogram - ✔✔A graph that displays continuous data. This type of graph has
vertical bars that show the counts or numbers in each range of data. A vertical bar chart
that shows the distribution of data across groups or categories.
✔✔Homoscedasticity - ✔✔A regression in which the variances in y for the values of x
are equal or close to equal
✔✔Hypothesis - ✔✔A proposed explanation used as a starting point for future
examination
✔✔Impact (RBM stage) - ✔✔last step when applying results-based management is to
study the long-term effects that the output will have (economic, environmental, cultural,
or political change)
,✔✔Incidence - ✔✔measures the number of new cases that arise in a population over
the course of a designated time period
# new cases / person-time units
✔✔Incremental Unit-Time Learning Model - ✔✔A learning curve model in which the
incremental unit time (the time needed to produce the last unit) declines by a constant
percentage each time the cumulative quantity of units produced is doubled
✔✔Independent Variable - ✔✔The variable presumed to influence another variable
(dependent variable); typically it is the level of activity or cost driver
✔✔Information Bias - ✔✔A prejudice in the data that results when either the respondent
or the interviewer has an agenda and is not presenting impartial questions or
responding with truly honest responses, respectively
✔✔Input (RBM stage) - ✔✔the first step of RBM is to define the resources, human or
financial, used by the RBM system (people, funds, information)
✔✔Interquartile range - ✔✔The difference, in value, between the bottom and top 25
percent of the sample or population
✔✔Interval Data - ✔✔Data that is ordered within a range and with each data point being
an equal interval apart
✔✔Item Response Theory (IRT) - ✔✔model of designing, analyzing and scoring tests
✔✔Key Performance Indicator (KPI) - ✔✔A performance measurement that
organizations use to quantify their level of success.
✔✔Laspeyres Index - ✔✔a comparison of the same quantity of goods with the same
weight over a period of time
✔✔Line graph - ✔✔A graph that illustrates relationships between two changing
variables with a line or curve that connects a series of successive data points
✔✔Lower limit control - ✔✔The minimum value on a control chart that a process should
not exceed
✔✔Mean - ✔✔An average, calculated by adding a series of elements in a data set
together and dividing by the total number in the series
✔✔Measurement Bias - ✔✔A prejudice in the data that results when the sample is not
representative of the population being tested
, ✔✔Median - ✔✔The value or quantity lying at the midpoint of a frequency distribution
✔✔Mode - ✔✔the value that appears most often in a set of data
✔✔Multicollinearity - ✔✔A multiple regression equation is flawed because two variables
thought to be independent are actually correlated to be independent
✔✔Multiple Linear Regression - ✔✔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
✔✔Multiplication Principle - ✔✔When the probabilities of multiple events are multiplied
together to determine the likelihood of all of those events occurring
✔✔Mutually exclusive events - ✔✔When two or more events are not able to occur at the
same time
✔✔Nominal Data - ✔✔Sometimes called categorical data or qualitative data, this data
type is used to label subjects or data by name
Data quality issues from misspelled data or missing data
✔✔Non parametric test - ✔✔A test that does not assume there to be a structure (may
be a normal distribution) to the population.
✔✔Norm-referenced test - ✔✔compare an individual to other individuals
✔✔Normal distribution - ✔✔data tending to occur around a central value with no bias
right or left
✔✔Null hypothesis - ✔✔The argument that there is no difference between two samples
or that a sample has not changed over time
✔✔Omission Error - ✔✔An error because something (for example, data or survey
response) is missing.
✔✔Operating Income - ✔✔Earnings before Interest and Taxes.
✔✔Ordinal Data - ✔✔Data that places data objects into an order according to some
quality with higher order indicating more of that quality
✔✔Outcome (RBM stage) - ✔✔the short-term effect that the outputs will have (greater
efficiency, more viability, better decision making, social action, or changed public
opinion)
