-WGU C207 DATA-DRIVEN DECISION-
MAKING ADVANCED EXAM PREP
QUESTIONS AND ANSWERS
1. A company wants to determine if a new marketing campaign increased sales. They set a
significance level of 0.05 and calculate a p-value of 0.03. What should the decision be?
A. Accept the null hypothesis.
B. Fail to reject the null hypothesis.
C. Reject the null hypothesis.
D. Increase the sample size.
Answer: C
Conceptual Explanation: If the p-value is less than or equal to the significance level
(alpha), the null hypothesis is rejected, suggesting statistical significance.
2. Which type of analytics is primarily concerned with identifying what is likely to happen in
the future based on historical data?
A. Descriptive Analytics
B. Predictive Analytics
,C. Diagnostic Analytics
D. Prescriptive Analytics
Answer: B
Conceptual Explanation: Predictive analytics uses historical data and statistical models to
forecast future outcomes.
3. In a linear regression model, what does the R-squared value represent?
A. The slope of the regression line.
B. The proportion of variance in the dependent variable explained by the independent
variable(s).
C. The probability that the null hypothesis is true.
D. The average error margin of the prediction.
Answer: B
Conceptual Explanation: R-squared, or the coefficient of determination, measures how
well the statistical model predicts the outcome.
4. Which measure of central tendency is most affected by extreme outliers in a data set?
A. Median
B. Mean
C. Mode
, D. Range
Answer: B
Conceptual Explanation: The mean is calculated by summing all values; therefore,
extreme high or low values pull the average toward them.
5. A project manager uses a Control Chart to monitor a process. If a data point falls outside
the Three-Sigma limits, what does this indicate?
A. The process is in control and performing as expected.
B. A Special Cause Variation has occurred.
C. A Common Cause Variation has occurred.
D. The sample size is too small.
Answer: B
Conceptual Explanation: Points outside control limits suggest variation that is not
inherent to the process (Special Cause) and requires investigation.
6. What is the primary difference between a T-test and an ANOVA?
A. T-tests require a larger sample size than ANOVA.
B. T-tests are for categorical data, and ANOVA is for numerical data.
C. ANOVA measures correlation, while T-test measures causation.
D. T-tests compare means of two groups, while ANOVA compares means of three or more
groups.
MAKING ADVANCED EXAM PREP
QUESTIONS AND ANSWERS
1. A company wants to determine if a new marketing campaign increased sales. They set a
significance level of 0.05 and calculate a p-value of 0.03. What should the decision be?
A. Accept the null hypothesis.
B. Fail to reject the null hypothesis.
C. Reject the null hypothesis.
D. Increase the sample size.
Answer: C
Conceptual Explanation: If the p-value is less than or equal to the significance level
(alpha), the null hypothesis is rejected, suggesting statistical significance.
2. Which type of analytics is primarily concerned with identifying what is likely to happen in
the future based on historical data?
A. Descriptive Analytics
B. Predictive Analytics
,C. Diagnostic Analytics
D. Prescriptive Analytics
Answer: B
Conceptual Explanation: Predictive analytics uses historical data and statistical models to
forecast future outcomes.
3. In a linear regression model, what does the R-squared value represent?
A. The slope of the regression line.
B. The proportion of variance in the dependent variable explained by the independent
variable(s).
C. The probability that the null hypothesis is true.
D. The average error margin of the prediction.
Answer: B
Conceptual Explanation: R-squared, or the coefficient of determination, measures how
well the statistical model predicts the outcome.
4. Which measure of central tendency is most affected by extreme outliers in a data set?
A. Median
B. Mean
C. Mode
, D. Range
Answer: B
Conceptual Explanation: The mean is calculated by summing all values; therefore,
extreme high or low values pull the average toward them.
5. A project manager uses a Control Chart to monitor a process. If a data point falls outside
the Three-Sigma limits, what does this indicate?
A. The process is in control and performing as expected.
B. A Special Cause Variation has occurred.
C. A Common Cause Variation has occurred.
D. The sample size is too small.
Answer: B
Conceptual Explanation: Points outside control limits suggest variation that is not
inherent to the process (Special Cause) and requires investigation.
6. What is the primary difference between a T-test and an ANOVA?
A. T-tests require a larger sample size than ANOVA.
B. T-tests are for categorical data, and ANOVA is for numerical data.
C. ANOVA measures correlation, while T-test measures causation.
D. T-tests compare means of two groups, while ANOVA compares means of three or more
groups.
