WGU C207 DATA-DRIVEN DECISION MAKING
OBJECTIVE ASSESSMENT DETAILED QUESTIONS AND
ANSWERS
We perform a regression analysis on a pair of variables and determine that there is a
linear relationship. The regression line is determined to be y=12x−5y=12x-5. What type
of linear relationship exists between the independent variable, x, and the dependent
variable, y? - ANSWER -positive
describe R-squared? - ANSWER -a) R-squared measures the goodness of fit.
b) R-squared can be misleading if there are false independent variables.
c) R-squared is 1.0 when correlation is -1 or 1.
Which of the following are technique a manager uses when forecasting? - ANSWER -
A)Time Series
c) Associative
d) Judgmental
Which of the following are advantages of cluster analysis? - ANSWER -b) It sorts
individual data points into different groups.
c) It will not help in determining target markets.
d) It does not identify successful and unsuccessful habits and systems.
A trend is... - ANSWER -a general slope upward or downward over a long period of
time.
If there is a relationship between variables, but the relationship is not linear, what
possible challenge with regression could it be? - ANSWER -Polynomial Regression
Catherine is trying to sell a ticket to the Super Bowl. She is determining whether or not
she should sell a ticket now or wait until just before the game and try and sell it then.
Currently, someone is offering $350 for the ticket. From research of past prices, she
knows that the tickets immediately before the Super Bowl are sold for about $500. She
determines that there is a 75 percent chance she will be able to sell the ticket
immediately before the Super Bowl. Based on expected payoffs from risk decision
making, what should she do? How much is the difference if she chooses to sell now -
ANSWER -Catherine should wait to sell ticket; the difference will be $25.
Heteroscedasticity - ANSWER -A regression in which the variances in y for the values
of x are not equal
, Cumulative Average-Time Learning Model - ANSWER -A learning curve model in
which the cumulative average time per unit declines by a constant percentage each
time the cumulative quantity of units produced is doubled
Dependent Variable - ANSWER -The variable whose value depends on one or more
variables in the equation; typically the cost or activity to be predicted
Independent Variable - ANSWER -The variable presumed to influence another variable
(dependent variable); typically it is the level of activity or cost driver
Analysis of Variance (ANOVA) - ANSWER -A statistical method that helps identify the
sources of variability by comparing their means or averages; it compares the variation
within a sample to the variation between samples to see if any differences are the result
of some contributing factor or if the differences occur by chance alon
Experience Curve - ANSWER -A curve that shows the decline in cost per unit in
various business functions of the value chain as the amount of these activities increases
Crossover Analysis - ANSWER -Allows a decision maker to identify the crossover
point, which represents the point at which we are indifferent between the plans
Cyclicality - ANSWER -Repetition of up (peaks) or down movements (troughs) that
follow or counteract a business cycle that can last several years
Linear Programming - ANSWER -A mathematical tool used to optimize a function (the
objective function) subject to various constraints, all of which are linear. Often used to
find the combination of products that will maximize profits or minimize costs
Simple Linear Regression - ANSWER -A form of regression analysis with only one
independent variable
Regression Line - ANSWER -the "line of best fit" where the margin of error at every
point is minimized
Data Management - ANSWER -The management, including cleaning and storage, of
collected data
Random Variation - ANSWER -The variability of a process which might be caused by
irregular fluctuations due to chance that cannot be anticipated, detected, or eliminated
Seasonality - ANSWER -Regular pattern of volatility, usually within a single year
Homoscedasticity - ANSWER -A regression in which the variances in y for the values of
x are equal or close to equal
, Irregularity - ANSWER -One-time deviations from expectations caused by unforeseen
circumstances such as war, natural disasters, poor weather, labor strikes, single-
occurrence company-specific surprises or macroeconomic shocks
Chi-squared Test - ANSWER -A hypothesis test that is used to examine the distribution
of categorical data
Expected Value - ANSWER -The Expected Value for an alternative is the sum of all
possible payoffs for that alternative, each weighted by the probability of that payoff
occurring
How would a greater number of samples and a fewer number of populations affect an
ANOVA analysis? - ANSWER -The results would be more accurate.
Mary is determining the likelihood that she will lose money on an investment. There is
an expected 10 percent gain in a normally distributed dataset, with a standard deviation
of 10 percent. The likelihood she'll lose money is _______ percent. - ANSWER -16
Select the choice that is true. Regression analysis: - ANSWER -takes information from
one data set and can predict information for another data set.
Jane works for a public health company. She is working on an anti-tobacco campaign
and is interested in how smoking cigarettes affects a smoker's cholesterol. She could
use the number of cigarettes smoked per day as her _____ variable and place it on the
__-axis. - ANSWER -independent, x
Multiple Linear Regression - ANSWER -A statistical method used to model the
relationship between one dependent (or response) variable and two or more
independent (or explanatory) variables by fitting a linear equation to observed data
Regression Analysis - ANSWER -A statistical analysis tool that quantifies the
relationship between a dependent variable and one or more independent variables
Decision Tree - ANSWER -A diagram of possible alternatives and their expected
consequences used to formulate possible courses of actions in order to make decisions
Time Series Analysis - ANSWER -Regression analysis that uses time as the
independent variable
Expected Value - ANSWER -The Expected Value for an alternative is the sum of all
possible payoffs for that alternative, each weighted by the probability of that payoff
occurring.
R-squared - ANSWER -The measure of 1) "goodness of fit" of the regression line, 2)
strength of the relationship, and 3) the percentage of variation in the dependent variable
that is explained by the independent variable
OBJECTIVE ASSESSMENT DETAILED QUESTIONS AND
ANSWERS
We perform a regression analysis on a pair of variables and determine that there is a
linear relationship. The regression line is determined to be y=12x−5y=12x-5. What type
of linear relationship exists between the independent variable, x, and the dependent
variable, y? - ANSWER -positive
describe R-squared? - ANSWER -a) R-squared measures the goodness of fit.
b) R-squared can be misleading if there are false independent variables.
c) R-squared is 1.0 when correlation is -1 or 1.
Which of the following are technique a manager uses when forecasting? - ANSWER -
A)Time Series
c) Associative
d) Judgmental
Which of the following are advantages of cluster analysis? - ANSWER -b) It sorts
individual data points into different groups.
c) It will not help in determining target markets.
d) It does not identify successful and unsuccessful habits and systems.
A trend is... - ANSWER -a general slope upward or downward over a long period of
time.
If there is a relationship between variables, but the relationship is not linear, what
possible challenge with regression could it be? - ANSWER -Polynomial Regression
Catherine is trying to sell a ticket to the Super Bowl. She is determining whether or not
she should sell a ticket now or wait until just before the game and try and sell it then.
Currently, someone is offering $350 for the ticket. From research of past prices, she
knows that the tickets immediately before the Super Bowl are sold for about $500. She
determines that there is a 75 percent chance she will be able to sell the ticket
immediately before the Super Bowl. Based on expected payoffs from risk decision
making, what should she do? How much is the difference if she chooses to sell now -
ANSWER -Catherine should wait to sell ticket; the difference will be $25.
Heteroscedasticity - ANSWER -A regression in which the variances in y for the values
of x are not equal
, Cumulative Average-Time Learning Model - ANSWER -A learning curve model in
which the cumulative average time per unit declines by a constant percentage each
time the cumulative quantity of units produced is doubled
Dependent Variable - ANSWER -The variable whose value depends on one or more
variables in the equation; typically the cost or activity to be predicted
Independent Variable - ANSWER -The variable presumed to influence another variable
(dependent variable); typically it is the level of activity or cost driver
Analysis of Variance (ANOVA) - ANSWER -A statistical method that helps identify the
sources of variability by comparing their means or averages; it compares the variation
within a sample to the variation between samples to see if any differences are the result
of some contributing factor or if the differences occur by chance alon
Experience Curve - ANSWER -A curve that shows the decline in cost per unit in
various business functions of the value chain as the amount of these activities increases
Crossover Analysis - ANSWER -Allows a decision maker to identify the crossover
point, which represents the point at which we are indifferent between the plans
Cyclicality - ANSWER -Repetition of up (peaks) or down movements (troughs) that
follow or counteract a business cycle that can last several years
Linear Programming - ANSWER -A mathematical tool used to optimize a function (the
objective function) subject to various constraints, all of which are linear. Often used to
find the combination of products that will maximize profits or minimize costs
Simple Linear Regression - ANSWER -A form of regression analysis with only one
independent variable
Regression Line - ANSWER -the "line of best fit" where the margin of error at every
point is minimized
Data Management - ANSWER -The management, including cleaning and storage, of
collected data
Random Variation - ANSWER -The variability of a process which might be caused by
irregular fluctuations due to chance that cannot be anticipated, detected, or eliminated
Seasonality - ANSWER -Regular pattern of volatility, usually within a single year
Homoscedasticity - ANSWER -A regression in which the variances in y for the values of
x are equal or close to equal
, Irregularity - ANSWER -One-time deviations from expectations caused by unforeseen
circumstances such as war, natural disasters, poor weather, labor strikes, single-
occurrence company-specific surprises or macroeconomic shocks
Chi-squared Test - ANSWER -A hypothesis test that is used to examine the distribution
of categorical data
Expected Value - ANSWER -The Expected Value for an alternative is the sum of all
possible payoffs for that alternative, each weighted by the probability of that payoff
occurring
How would a greater number of samples and a fewer number of populations affect an
ANOVA analysis? - ANSWER -The results would be more accurate.
Mary is determining the likelihood that she will lose money on an investment. There is
an expected 10 percent gain in a normally distributed dataset, with a standard deviation
of 10 percent. The likelihood she'll lose money is _______ percent. - ANSWER -16
Select the choice that is true. Regression analysis: - ANSWER -takes information from
one data set and can predict information for another data set.
Jane works for a public health company. She is working on an anti-tobacco campaign
and is interested in how smoking cigarettes affects a smoker's cholesterol. She could
use the number of cigarettes smoked per day as her _____ variable and place it on the
__-axis. - ANSWER -independent, x
Multiple Linear Regression - ANSWER -A statistical method used to model the
relationship between one dependent (or response) variable and two or more
independent (or explanatory) variables by fitting a linear equation to observed data
Regression Analysis - ANSWER -A statistical analysis tool that quantifies the
relationship between a dependent variable and one or more independent variables
Decision Tree - ANSWER -A diagram of possible alternatives and their expected
consequences used to formulate possible courses of actions in order to make decisions
Time Series Analysis - ANSWER -Regression analysis that uses time as the
independent variable
Expected Value - ANSWER -The Expected Value for an alternative is the sum of all
possible payoffs for that alternative, each weighted by the probability of that payoff
occurring.
R-squared - ANSWER -The measure of 1) "goodness of fit" of the regression line, 2)
strength of the relationship, and 3) the percentage of variation in the dependent variable
that is explained by the independent variable
