WGU C207 DATA-DRIVEN DECISION MAKING – PRACTICE EXAM | STUDY GUIDE |
TESTBANK | LATEST UPDATE 2026/2027 | QUESTIONS | 100% CORRECT ANSWERS
Table of Contents
Data-Driven Decision Making Fundamentals
Research Design and Business Analytics
Descriptive Statistics
Probability and Probability Distributions
Sampling and Sampling Distributions
Confidence Intervals
Hypothesis Testing
Correlation and Regression
Data Visualization and Interpretation
Decision-Making Using Statistical Evidence
Ethics, Bias, and Data Quality
Introduction
This practice examination is designed to help learners prepare for the WGU C207
Data-Driven Decision Making Objective Assessment by emphasizing statistical
reasoning, interpretation of business data, evidence-based decision-making, and
applied analytical techniques. The questions reflect graduate-level expectations by
requiring interpretation of scenarios rather than simple memorization. Topics
include descriptive and inferential statistics, hypothesis testing, regression,
sampling, confidence intervals, research design, and ethical data use. Learners
should expect realistic business situations requiring professional judgment,
analytical thinking, and evaluation of statistical evidence to support organizational
decisions.
Question 1
A retail company wants to determine whether a newly implemented inventory
management system has reduced average stockout incidents compared with last
,year. Which statistical approach is most appropriate?
A. Chi-square goodness-of-fit test
B. One-sample t-test comparing the new mean with the historical mean
C. Pearson correlation analysis
D. Cluster analysis
Correct Answer: B
Explanation: A one-sample t-test evaluates whether the new average differs
significantly from a known historical benchmark.
Question 2
A manager concludes that two variables are unrelated because the correlation
coefficient equals 0.02. Which interpretation is most appropriate?
A. The variables have a perfect nonlinear relationship.
B. There is little evidence of a linear relationship.
C. One variable causes the other.
D. The variables are statistically dependent.
Correct Answer: B
Explanation: A correlation near zero indicates little or no linear association but
does not rule out nonlinear relationships.
Question 3
,A researcher selects every 20th customer from an alphabetized customer list. Which
sampling method is being used?
A. Stratified sampling
B. Cluster sampling
C. Systematic sampling
D. Convenience sampling
Correct Answer: C
Explanation: Systematic sampling selects observations at regular intervals after an
initial starting point.
Question 4
Which measure of central tendency is least affected by extreme outliers?
A. Mean
B. Median
C. Weighted mean
D. Arithmetic average
Correct Answer: B
Explanation: The median is resistant to extreme observations because it depends
only on the ordered position of data.
Question 5
, A p-value of 0.018 is obtained when testing a hypothesis at α = 0.05. What decision
should be made?
A. Fail to reject the null hypothesis.
B. Reject the null hypothesis.
C. Increase the significance level.
D. Collect additional data before interpreting results.
Correct Answer: B
Explanation: Because the p-value is smaller than the significance level, the null
hypothesis is rejected.
Question 6
Which graph is most appropriate for displaying the distribution of continuous
employee salaries?
A. Pie chart
B. Histogram
C. Pareto chart
D. Stacked bar chart
Correct Answer: B
Explanation: Histograms effectively display the distribution, spread, and shape of
continuous numerical data.
Question 7
TESTBANK | LATEST UPDATE 2026/2027 | QUESTIONS | 100% CORRECT ANSWERS
Table of Contents
Data-Driven Decision Making Fundamentals
Research Design and Business Analytics
Descriptive Statistics
Probability and Probability Distributions
Sampling and Sampling Distributions
Confidence Intervals
Hypothesis Testing
Correlation and Regression
Data Visualization and Interpretation
Decision-Making Using Statistical Evidence
Ethics, Bias, and Data Quality
Introduction
This practice examination is designed to help learners prepare for the WGU C207
Data-Driven Decision Making Objective Assessment by emphasizing statistical
reasoning, interpretation of business data, evidence-based decision-making, and
applied analytical techniques. The questions reflect graduate-level expectations by
requiring interpretation of scenarios rather than simple memorization. Topics
include descriptive and inferential statistics, hypothesis testing, regression,
sampling, confidence intervals, research design, and ethical data use. Learners
should expect realistic business situations requiring professional judgment,
analytical thinking, and evaluation of statistical evidence to support organizational
decisions.
Question 1
A retail company wants to determine whether a newly implemented inventory
management system has reduced average stockout incidents compared with last
,year. Which statistical approach is most appropriate?
A. Chi-square goodness-of-fit test
B. One-sample t-test comparing the new mean with the historical mean
C. Pearson correlation analysis
D. Cluster analysis
Correct Answer: B
Explanation: A one-sample t-test evaluates whether the new average differs
significantly from a known historical benchmark.
Question 2
A manager concludes that two variables are unrelated because the correlation
coefficient equals 0.02. Which interpretation is most appropriate?
A. The variables have a perfect nonlinear relationship.
B. There is little evidence of a linear relationship.
C. One variable causes the other.
D. The variables are statistically dependent.
Correct Answer: B
Explanation: A correlation near zero indicates little or no linear association but
does not rule out nonlinear relationships.
Question 3
,A researcher selects every 20th customer from an alphabetized customer list. Which
sampling method is being used?
A. Stratified sampling
B. Cluster sampling
C. Systematic sampling
D. Convenience sampling
Correct Answer: C
Explanation: Systematic sampling selects observations at regular intervals after an
initial starting point.
Question 4
Which measure of central tendency is least affected by extreme outliers?
A. Mean
B. Median
C. Weighted mean
D. Arithmetic average
Correct Answer: B
Explanation: The median is resistant to extreme observations because it depends
only on the ordered position of data.
Question 5
, A p-value of 0.018 is obtained when testing a hypothesis at α = 0.05. What decision
should be made?
A. Fail to reject the null hypothesis.
B. Reject the null hypothesis.
C. Increase the significance level.
D. Collect additional data before interpreting results.
Correct Answer: B
Explanation: Because the p-value is smaller than the significance level, the null
hypothesis is rejected.
Question 6
Which graph is most appropriate for displaying the distribution of continuous
employee salaries?
A. Pie chart
B. Histogram
C. Pareto chart
D. Stacked bar chart
Correct Answer: B
Explanation: Histograms effectively display the distribution, spread, and shape of
continuous numerical data.
Question 7
