Version Data-Driven Decision Making
(PVPC) Questions and Answers Updated
2026/2027 Version | Verified Answers
1. A normally distributed data set has a mean of 10 and a standard deviation of
2. What is the probability that a randomly selected event from the data set
will be between 8 and 12?
a. 68.2%
b. 95.4%
c. 99.6%
d. 100% - ANSWER ✅ a
2. A manager uses a linear regression to examine how the store's retail sales are
predicted by advertising expenditures.
What will retail sales represent in this regression?
a. The independent variable
b. The dependent variable
c. The control variable
d. The predictor variable - ANSWER ✅ b
3. An analyst used multiple linear regression to explore how Store A's sales (
y) are predicted by Store A's advertising expenditure dollars (variable x1)
and the advertising expenditure dollars of Store A's competitor (variable x2).
The estimated regression is y = 532 + 80.5 x1 - 35.6 x2.
Which scenario would be predicted if x1 is $1,000 and x2 is also $1,000?
a. Sales of $45,432
b. Sales of $116,632
c. Sales of $44,900
, d. Sales of $44,367 - ANSWER ✅ a
4. A company decides to auction excess inventory on an auction website. They
have performed a regression analysis to identify how the length of the
auction impacts the final price.
Which statistic indicates the strength of the relationship between the length
of auctions and final price?
a. R-squared
b. Z-score
c. P-value
d. F-statistic - ANSWER ✅ a
5. A researcher looks at moving average data on store sales and wishes to
perform a multiple regression of interest rates and disposable income.
What is a particular concern when performing time series multiple
regression?
a. Multicollinearity
b. Heteroscedasticity
c. Homoscedasticity
d. Autocorrelation - ANSWER ✅ d
6. A retail store notices a spike in turkey sales every November.
Which time series pattern are turkey sales likely to exhibit?
a. Trend
b. Cyclicality
c. Seasonality
d. White noise - ANSWER ✅ c
7. A researcher wants to predict test scores based upon hours spent studying.
Which type of regression would be more appropriate?
a. Weighted least squares regression
b. Ordinary least squares regression
c. Logistic regression
, d. Multivariate regression - ANSWER ✅ b
8. A doctoral student is surveying chief executive officers (CEOs) to
understand their relationships with their governing boards. The student
receives responses to a survey with ten questions that rates the respective
relationships.
Why would the student measure the standard deviation of responses?
a. To create a bell curve
b. To measure the spread of the data
c. To determine if the data is nonlinear
d. To understand the midpoint location of the data - ANSWER ✅ b
9. A doctoral student is surveying chief executive officers (CEOs) to
understand their relationships with their governing boards. The student
determines the years of business experience for each CEO as well as their
rating, on a 10-point scale, of satisfaction with the governing board.
Which statistical approach should be used to display the data for analysis?
a. Scatter plot
b. Median
c. Bell curve
d. Mean - ANSWER ✅ a
10.Which two decision considerations describe fact-based decision making,
according to the quality management principles?
a. Decisions reduce external bias.
b. Decisions have marginal effect on relationships with suppliers.
c. Decisions foster trust in plans.
d. Decisions use diversity of experience. - ANSWER ✅ a, c
11.An organization is concerned about whether quality control standards are
being met and develops a strategy to test quality control metrics.
Which step does this represent in the Plan-Do-Check-Act cycle?
a. Plan