https://www.stuvia.com/user/performance
WGU C207 DATA-DRIVEN DECISION MAKING Original Study Guide &
Exam Questions with Answers and Rationales
Section 1: Fundamentals of Data-Driven Decision Making
(Questions)
1. What is data-driven decision making (DDDM)?
A. Making decisions based on intuition and experience
only
B. Using data, analytics, and statistical analysis to inform
and guide business decisions
C. Relying on opinions of senior leaders only
D. Making decisions without any analysis
Answer: B
Rationale: Data-driven decision making uses objective
data, statistical analysis, and analytical tools to make
informed business decisions, reducing reliance on
intuition alone.
2. What is the primary advantage of data-driven decision
making over intuition-based decision making?
A. It is always faster
B. It reduces bias and provides objective evidence to
support decisions
C. It requires no expertise
D. It eliminates all risk
Answer: B
,https://www.stuvia.com/user/performance
Rationale: DDDM reduces cognitive bias by relying on
objective data and statistical evidence, leading to more
consistent and defensible decisions.
3. What is "analytics" in the context of business decision
making?
A. Only spreadsheets
B. The systematic use of data, statistical analysis, and
quantitative methods to gain insights and support
decisions
C. Only financial reporting
D. Only qualitative research
Answer: B
Rationale: Analytics encompasses the tools, techniques,
and processes used to analyze data, identify patterns, and
support decision making.
4. What is the difference between "data" and "information"?
A. They are the same
B. Data is raw, unprocessed facts; information is data that
has been processed and organized to have meaning
C. Information is raw; data is processed
D. Neither has meaning
Answer: B
Rationale: Data consists of raw facts and figures.
,https://www.stuvia.com/user/performance
Information is data that has been processed, organized,
or structured to provide context and meaning.
5. What is "knowledge" in the data-information-knowledge-
wisdom (DIKW) hierarchy?
A. Raw facts
B. Processed data
C. Information combined with experience, context, and
interpretation to support decisions
D. The final answer always
Answer: C
Rationale: Knowledge is information that has been
synthesized with experience, context, and understanding,
enabling better decision making.
6. What is "wisdom" in the DIKW hierarchy?
A. The ability to use knowledge to make sound judgments
and decisions over time
B. Only data collection
C. Only information processing
D. Only knowledge storage
Answer: A
Rationale: Wisdom is the highest level—applying
knowledge with judgment, ethics, and long-term
perspective to make sound decisions.
, https://www.stuvia.com/user/performance
7. What is the first step in the data-driven decision-making
process?
A. Analyze data
B. Collect data
C. Identify the problem or question
D. Present results
Answer: C
Rationale: The DDDM process begins with clearly defining
the problem, question, or decision that needs to be
addressed. This guides all subsequent steps.
8. What is "business intelligence" (BI)?
A. Only financial reporting
B. Technologies, applications, and practices for collecting,
integrating, analyzing, and presenting business information
C. Only spreadsheets
D. Only data storage
Answer: B
Rationale: BI encompasses the tools and processes used
to transform raw data into meaningful insights for
business decision making.
9. What is a "key performance indicator" (KPI)?
A. Any data point
B. A measurable value that demonstrates how effectively
an organization is achieving key business objectives
WGU C207 DATA-DRIVEN DECISION MAKING Original Study Guide &
Exam Questions with Answers and Rationales
Section 1: Fundamentals of Data-Driven Decision Making
(Questions)
1. What is data-driven decision making (DDDM)?
A. Making decisions based on intuition and experience
only
B. Using data, analytics, and statistical analysis to inform
and guide business decisions
C. Relying on opinions of senior leaders only
D. Making decisions without any analysis
Answer: B
Rationale: Data-driven decision making uses objective
data, statistical analysis, and analytical tools to make
informed business decisions, reducing reliance on
intuition alone.
2. What is the primary advantage of data-driven decision
making over intuition-based decision making?
A. It is always faster
B. It reduces bias and provides objective evidence to
support decisions
C. It requires no expertise
D. It eliminates all risk
Answer: B
,https://www.stuvia.com/user/performance
Rationale: DDDM reduces cognitive bias by relying on
objective data and statistical evidence, leading to more
consistent and defensible decisions.
3. What is "analytics" in the context of business decision
making?
A. Only spreadsheets
B. The systematic use of data, statistical analysis, and
quantitative methods to gain insights and support
decisions
C. Only financial reporting
D. Only qualitative research
Answer: B
Rationale: Analytics encompasses the tools, techniques,
and processes used to analyze data, identify patterns, and
support decision making.
4. What is the difference between "data" and "information"?
A. They are the same
B. Data is raw, unprocessed facts; information is data that
has been processed and organized to have meaning
C. Information is raw; data is processed
D. Neither has meaning
Answer: B
Rationale: Data consists of raw facts and figures.
,https://www.stuvia.com/user/performance
Information is data that has been processed, organized,
or structured to provide context and meaning.
5. What is "knowledge" in the data-information-knowledge-
wisdom (DIKW) hierarchy?
A. Raw facts
B. Processed data
C. Information combined with experience, context, and
interpretation to support decisions
D. The final answer always
Answer: C
Rationale: Knowledge is information that has been
synthesized with experience, context, and understanding,
enabling better decision making.
6. What is "wisdom" in the DIKW hierarchy?
A. The ability to use knowledge to make sound judgments
and decisions over time
B. Only data collection
C. Only information processing
D. Only knowledge storage
Answer: A
Rationale: Wisdom is the highest level—applying
knowledge with judgment, ethics, and long-term
perspective to make sound decisions.
, https://www.stuvia.com/user/performance
7. What is the first step in the data-driven decision-making
process?
A. Analyze data
B. Collect data
C. Identify the problem or question
D. Present results
Answer: C
Rationale: The DDDM process begins with clearly defining
the problem, question, or decision that needs to be
addressed. This guides all subsequent steps.
8. What is "business intelligence" (BI)?
A. Only financial reporting
B. Technologies, applications, and practices for collecting,
integrating, analyzing, and presenting business information
C. Only spreadsheets
D. Only data storage
Answer: B
Rationale: BI encompasses the tools and processes used
to transform raw data into meaningful insights for
business decision making.
9. What is a "key performance indicator" (KPI)?
A. Any data point
B. A measurable value that demonstrates how effectively
an organization is achieving key business objectives
