WGU C207 TASK 1 2026 PROBABILITY AND
STATISTICAL APPLICATIONS REVIEW
QUESTIONS SOLUTIONS PROFESSIONAL
GUIDE
◉ 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?
Answer: Trend
◉ A car dealership wishes to forecast car sales based upon price
discounts and television ads. What forecasting technique should
the dealership use?
Answer: Regression Analysis
◉ 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?
,Answer: 104,500
◉ 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?
Answer: Autocorrelation
◉ 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?
Answer: R - square
◉ A researcher is evaluating voter turnout based upon age and
location of voting precincts. Which analysis technique should
she use?
Answer: Cluster 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?
Answer: Decision Analysis
◉ After traveling down the Mississippi River, barges randomly
arrive in New Orleans and are unloaded on a FIFO basis. Any barges
not unloaded must wait until the following day. This could incure
additional cost and negative customer feedback. What analysis
technique should they use to support their request for additional
unloading crews?
Answer: Simulation
◉ A 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?
Answer: Seasonality
◉ Dedication to fact-based decision making
STATISTICAL APPLICATIONS REVIEW
QUESTIONS SOLUTIONS PROFESSIONAL
GUIDE
◉ 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?
Answer: Trend
◉ A car dealership wishes to forecast car sales based upon price
discounts and television ads. What forecasting technique should
the dealership use?
Answer: Regression Analysis
◉ 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?
,Answer: 104,500
◉ 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?
Answer: Autocorrelation
◉ 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?
Answer: R - square
◉ A researcher is evaluating voter turnout based upon age and
location of voting precincts. Which analysis technique should
she use?
Answer: Cluster 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?
Answer: Decision Analysis
◉ After traveling down the Mississippi River, barges randomly
arrive in New Orleans and are unloaded on a FIFO basis. Any barges
not unloaded must wait until the following day. This could incure
additional cost and negative customer feedback. What analysis
technique should they use to support their request for additional
unloading crews?
Answer: Simulation
◉ A 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?
Answer: Seasonality
◉ Dedication to fact-based decision making
