WGU C207 OA Module 3 Data Driven Decision Making
Questions and Answers (2022/2023) (Verified Answers)
Linear Programming
A craftsman builds two kinds of birdhouses. One for bluebirds and one for cardinals. He
knows the amount of labor and the units of lumber that are needed for each birdhouse.
The craftsman has available 60 hours of labor and 120 units of lumber. Which technique
should the craftsman use to minimize cost?
Cross Over
Ski Boards, Inc. wants to enter the market quickly with a new finish on its ski boards. It
has three choices: refurbish the old equipment, make major modifications or purchase
new equipment. The company has estimated the fixed and variable cost for each option.
Which technique should they use to select the least costly option?
Chi-square
Which analysis technique can be used with hypothesis testing when nominal or
categorical data is gathered?
Normal distribution
United Motors indicates that gas mileage tests of one of their cars, the Starbird 300,
under city driving conditions has a mean of 30 mph and a median of 29.9 mph. Which
type of distribution would this testing represent?
ANOVA
North American Oil Company is attempting to develop a reasonably priced gasoline that
will deliver improved gasoline mileage. As part of its development process, the company
would like to compare the effects of three types of gasoline. Which analysis technique
should the company use to compare the performances of each gasoline type?
$8
Enterprise Industries produces Fresh, a brand of liquid laundry detergent. In order to
study the relationship between price and demand for the large bottle of Fresh, the
company develops the following relationship: Demand = 600 + 50X. What price is
needed to produce a demand of 1000?
Trend
A large manufacturer wants to forecast demand for a piece of pollution-control
equipment. A review of the past 12 months of sales indicates that sales are increasing.
What time series pattern does the sales likely exhibit?
Multiple Regression Analysis
A car dealership wishes to forecast car sales based upon price discounts and television
ads. What forecasting technique should the dealership use?
104,500
A city hospital wishes to evaluate the labor hours it needs based upon monthly occupied
bed days and average length of patients' stay. The estimated regression is: y = 2000 +
75X1 + 65X2 What scenario would be predicted if X1 = 500 and X2 = 1000?
Autocorrelation
A company uses time series analysis to develop its product forecast. The forecaster
uses simple linear regression but notices that the past data trend is aligned with
advertising expenditures. What issue might exist with this regression analysis?
, R - square
A business entrepreneur wishes to predict yearly revenue for potential Sub Restaurant
sites. He performs a regression analysis based upon the area's population and business
rating. What statistic indicates the strength of the relationship of population and rating to
revenue?
Cluster Analysis
A researcher is evaluating voter turnout based upon age and location of voting
precincts. Which analysis technique should she use?
Decision Analysis
An entrepreneur is thinking about starting an independent gasoline station and
considering how large the station should be. The annual return will depend upon the
size of station and a number of marketing factors related to the oil industry and demand
for gasoline. What analysis technique should be used to evaluate station size given the
uncertainty of oil industry and demand factors?
Simulation
After traveling down the Mississippi River, barges randomly arrive in New Orleans and
are unloaded on a first-in, first-out basis. Any barges not unloaded on the day of arrival
must wait until the following day incurring additional cost and negatively affecting
customer service. The dock superintendent wants to use analytics to support a request
for additional unloading crews. What analysis technique should he use?
Seasonality
Boston Hallmark store is preparing a budget for the next year and needs to forecast
sales. The store notices variation in sales around holidays. What pattern describes the
data to be forecasted?
Process Approach
Principle that lowers cost and shortens cycle times through the effective use of
resources.
People Involvement
Principle that seeks the efforts of people at all levels of the organization to achieve
quality objectives.
Continual Improvment
A manufacturer initiates a 5 year program of analysis and process improvement to
improve product quality and reduce lead-time to customers.
Customer focus
Principle that focuses on understanding current and future customer needs.
Quality Assurance
A car manufacturer installs a training program for a airbag assembly
SIPOC Diagram
A fast food restaurant wishes to reduce order delivery time by analyzing its process
from food supplies to fulfilling the order
PDCA
A quality team is asked to develop & implement new manufacturing procedures to
improve the company's just-in-time performance with key customers
Quality Control
A manufacturer of barbecue sauce analyzes the # of oz per bottle to ensure customers
receive 12oz per bottle
Questions and Answers (2022/2023) (Verified Answers)
Linear Programming
A craftsman builds two kinds of birdhouses. One for bluebirds and one for cardinals. He
knows the amount of labor and the units of lumber that are needed for each birdhouse.
The craftsman has available 60 hours of labor and 120 units of lumber. Which technique
should the craftsman use to minimize cost?
Cross Over
Ski Boards, Inc. wants to enter the market quickly with a new finish on its ski boards. It
has three choices: refurbish the old equipment, make major modifications or purchase
new equipment. The company has estimated the fixed and variable cost for each option.
Which technique should they use to select the least costly option?
Chi-square
Which analysis technique can be used with hypothesis testing when nominal or
categorical data is gathered?
Normal distribution
United Motors indicates that gas mileage tests of one of their cars, the Starbird 300,
under city driving conditions has a mean of 30 mph and a median of 29.9 mph. Which
type of distribution would this testing represent?
ANOVA
North American Oil Company is attempting to develop a reasonably priced gasoline that
will deliver improved gasoline mileage. As part of its development process, the company
would like to compare the effects of three types of gasoline. Which analysis technique
should the company use to compare the performances of each gasoline type?
$8
Enterprise Industries produces Fresh, a brand of liquid laundry detergent. In order to
study the relationship between price and demand for the large bottle of Fresh, the
company develops the following relationship: Demand = 600 + 50X. What price is
needed to produce a demand of 1000?
Trend
A large manufacturer wants to forecast demand for a piece of pollution-control
equipment. A review of the past 12 months of sales indicates that sales are increasing.
What time series pattern does the sales likely exhibit?
Multiple Regression Analysis
A car dealership wishes to forecast car sales based upon price discounts and television
ads. What forecasting technique should the dealership use?
104,500
A city hospital wishes to evaluate the labor hours it needs based upon monthly occupied
bed days and average length of patients' stay. The estimated regression is: y = 2000 +
75X1 + 65X2 What scenario would be predicted if X1 = 500 and X2 = 1000?
Autocorrelation
A company uses time series analysis to develop its product forecast. The forecaster
uses simple linear regression but notices that the past data trend is aligned with
advertising expenditures. What issue might exist with this regression analysis?
, R - square
A business entrepreneur wishes to predict yearly revenue for potential Sub Restaurant
sites. He performs a regression analysis based upon the area's population and business
rating. What statistic indicates the strength of the relationship of population and rating to
revenue?
Cluster Analysis
A researcher is evaluating voter turnout based upon age and location of voting
precincts. Which analysis technique should she use?
Decision Analysis
An entrepreneur is thinking about starting an independent gasoline station and
considering how large the station should be. The annual return will depend upon the
size of station and a number of marketing factors related to the oil industry and demand
for gasoline. What analysis technique should be used to evaluate station size given the
uncertainty of oil industry and demand factors?
Simulation
After traveling down the Mississippi River, barges randomly arrive in New Orleans and
are unloaded on a first-in, first-out basis. Any barges not unloaded on the day of arrival
must wait until the following day incurring additional cost and negatively affecting
customer service. The dock superintendent wants to use analytics to support a request
for additional unloading crews. What analysis technique should he use?
Seasonality
Boston Hallmark store is preparing a budget for the next year and needs to forecast
sales. The store notices variation in sales around holidays. What pattern describes the
data to be forecasted?
Process Approach
Principle that lowers cost and shortens cycle times through the effective use of
resources.
People Involvement
Principle that seeks the efforts of people at all levels of the organization to achieve
quality objectives.
Continual Improvment
A manufacturer initiates a 5 year program of analysis and process improvement to
improve product quality and reduce lead-time to customers.
Customer focus
Principle that focuses on understanding current and future customer needs.
Quality Assurance
A car manufacturer installs a training program for a airbag assembly
SIPOC Diagram
A fast food restaurant wishes to reduce order delivery time by analyzing its process
from food supplies to fulfilling the order
PDCA
A quality team is asked to develop & implement new manufacturing procedures to
improve the company's just-in-time performance with key customers
Quality Control
A manufacturer of barbecue sauce analyzes the # of oz per bottle to ensure customers
receive 12oz per bottle
