WGU C207 DATA-DRIVEN DECISION MAKING OA
FINAL EXAM QUESTIONS, ANSWERS AND
RATIONALES 2026
QUESTION 1
A company is analyzing customer purchase patterns to determine which products are
frequently bought together. This type of analysis is known as:
A) Cluster analysis
B) Market basket analysis
C) Regression analysis
D) Time series analysis
Correct Answer: B) Market basket analysis.
Rationale: Market basket analysis is a data mining technique used to discover associations
between products purchased together. It identifies relationships such as "customers who
buy product X also buy product Y." This is commonly used in retail for cross-selling and
product placement.
QUESTION 2
What is the purpose of a decision tree in data analytics?
A) To display the distribution of a variable
B) To predict outcomes based on a series of decisions
C) To measure the strength of a relationship
D) To display proportions of categories
Correct Answer: B) To predict outcomes based on a series of decisions.
,Rationale: Decision trees are used to predict an outcome by following a series of decisions
based on the values of predictor variables. They are a form of predictive analytics and are
valuable in data-driven decision making.
QUESTION 3
Which of the following is an example of a data quality issue?
A) Missing values
B) Duplicate records
C) Inconsistent formatting
D) All of the above
Correct Answer: D) All of the above.
Rationale: Data quality issues include missing values, duplicate records, inconsistent
formatting, and inaccurate data. These issues can significantly impact the reliability of
analysis and decision making.
QUESTION 4
A researcher is testing a new drug and uses a placebo for the control group. The
participants do not know if they are receiving the drug or the placebo. This describes a:
A) Double-blind study
B) Single-blind study
C) Open-label study
D) Cross-sectional study
Correct Answer: B) Single-blind study.
,Rationale: A single-blind study is one where the participants do not know whether they are
receiving the treatment or the placebo. In a double-blind study, neither the participants
nor the researchers know the treatment assignments.
QUESTION 5
What is the primary purpose of data visualization?
A) To make data more complex
B) To communicate data insights effectively
C) To replace statistical analysis
D) To store large amounts of data
Correct Answer: B) To communicate data insights effectively.
Rationale: Data visualization is used to communicate data insights effectively by
presenting data in a graphical format. It makes patterns, trends, and outliers more
accessible to decision makers.
QUESTION 6
A company uses a balanced scorecard to measure performance across four perspectives.
Which of the following is NOT one of the four perspectives?
A) Financial
B) Customer
C) Operations
D) Internal Business Processes
Correct Answer: C) Operations.
, Rationale: The four perspectives of the balanced scorecard are Financial, Customer,
Internal Business Processes, and Learning and Growth. Operations is not one of the four
perspectives.
QUESTION 7
Which of the following is an example of a leading indicator?
A) Quarterly profits
B) Employee satisfaction score
C) Number of product returns
D) Customer complaints
*Correct Answer: B) Employee satisfaction score.
Rationale: Leading indicators predict future performance. Employee satisfaction can
predict future productivity, retention, and customer satisfaction. Quarterly profits and
product returns are lagging indicators.
QUESTION 8
What does the term "regression to the mean" refer to?
A) The tendency for extreme scores to become less extreme on subsequent
measurements
B) The relationship between variables is linear
C) The distribution is symmetrical
D) The sample size is adequate
Correct Answer: A) The tendency for extreme scores to become less extreme on
subsequent measurements.
FINAL EXAM QUESTIONS, ANSWERS AND
RATIONALES 2026
QUESTION 1
A company is analyzing customer purchase patterns to determine which products are
frequently bought together. This type of analysis is known as:
A) Cluster analysis
B) Market basket analysis
C) Regression analysis
D) Time series analysis
Correct Answer: B) Market basket analysis.
Rationale: Market basket analysis is a data mining technique used to discover associations
between products purchased together. It identifies relationships such as "customers who
buy product X also buy product Y." This is commonly used in retail for cross-selling and
product placement.
QUESTION 2
What is the purpose of a decision tree in data analytics?
A) To display the distribution of a variable
B) To predict outcomes based on a series of decisions
C) To measure the strength of a relationship
D) To display proportions of categories
Correct Answer: B) To predict outcomes based on a series of decisions.
,Rationale: Decision trees are used to predict an outcome by following a series of decisions
based on the values of predictor variables. They are a form of predictive analytics and are
valuable in data-driven decision making.
QUESTION 3
Which of the following is an example of a data quality issue?
A) Missing values
B) Duplicate records
C) Inconsistent formatting
D) All of the above
Correct Answer: D) All of the above.
Rationale: Data quality issues include missing values, duplicate records, inconsistent
formatting, and inaccurate data. These issues can significantly impact the reliability of
analysis and decision making.
QUESTION 4
A researcher is testing a new drug and uses a placebo for the control group. The
participants do not know if they are receiving the drug or the placebo. This describes a:
A) Double-blind study
B) Single-blind study
C) Open-label study
D) Cross-sectional study
Correct Answer: B) Single-blind study.
,Rationale: A single-blind study is one where the participants do not know whether they are
receiving the treatment or the placebo. In a double-blind study, neither the participants
nor the researchers know the treatment assignments.
QUESTION 5
What is the primary purpose of data visualization?
A) To make data more complex
B) To communicate data insights effectively
C) To replace statistical analysis
D) To store large amounts of data
Correct Answer: B) To communicate data insights effectively.
Rationale: Data visualization is used to communicate data insights effectively by
presenting data in a graphical format. It makes patterns, trends, and outliers more
accessible to decision makers.
QUESTION 6
A company uses a balanced scorecard to measure performance across four perspectives.
Which of the following is NOT one of the four perspectives?
A) Financial
B) Customer
C) Operations
D) Internal Business Processes
Correct Answer: C) Operations.
, Rationale: The four perspectives of the balanced scorecard are Financial, Customer,
Internal Business Processes, and Learning and Growth. Operations is not one of the four
perspectives.
QUESTION 7
Which of the following is an example of a leading indicator?
A) Quarterly profits
B) Employee satisfaction score
C) Number of product returns
D) Customer complaints
*Correct Answer: B) Employee satisfaction score.
Rationale: Leading indicators predict future performance. Employee satisfaction can
predict future productivity, retention, and customer satisfaction. Quarterly profits and
product returns are lagging indicators.
QUESTION 8
What does the term "regression to the mean" refer to?
A) The tendency for extreme scores to become less extreme on subsequent
measurements
B) The relationship between variables is linear
C) The distribution is symmetrical
D) The sample size is adequate
Correct Answer: A) The tendency for extreme scores to become less extreme on
subsequent measurements.
