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Data-Driven-Decision-Making Reliable Test Objectives | Exam Data-Driven-Decision-Making Fees

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WGU VPC2Data-Driven Decision MakingC207 Sample Questions (Q19-Q24):

NEW QUESTION # 19
What classifies analytics as descriptive, predictive, or prescriptive?

A. The kind of software used for the analysis
B. The purpose and methods
C. The sample size and analysis technique used
D. The data validity and reliability

Answer: B

Explanation:
Analytics is classified as descriptive, predictive, or prescriptive based onthe purpose of the analysis and the methods used to carry it out, which is a foundational concept in data-driven decision making. The distinction reflects the type of managerial question being addressed rather than technical aspects such as software tools, sample size, or data reliability.
Descriptive analytics focuses on understandingwhat has happenedby summarizing historical data. It relies on descriptive statistics, reports, dashboards, and data visualizations to provide insights into past performance.
Predictive analytics extends this approach to determinewhat is likely to happenby using statistical models, probability distributions, regression analysis, and forecasting techniques to estimate future outcomes.
Prescriptive analytics goes further by identifyingwhat should be doneto achieve desired results. It uses optimization models, decision trees, simulations, and scenario analysis to recommend the best course of action under given constraints.
In data-driven decision making, the classification of analytics depends on how results are intended to support decisions and the analytical techniques applied to achieve that goal. Factors such as data quality and software influence accuracy and efficiency but do not define the analytics category itself. Therefore, the correct classification criterion is thepurpose and methods, making optionCthe correct answer.

NEW QUESTION # 20
What is the formula for calculating a simple index number?

A. The base year's price divided by the current price
B. The base year's price divided by the current price times 100
C. The current price divided by the base year's price times 100
D. The current price divided by the base year's price

Answer: C

Explanation:
Asimple index numberis used in data-driven decision making to measure relative change in a variable over time, commonly prices, quantities, or values. The standard formula for a simple price index compares the value in the current period to a base period and expresses the change as a percentage.
The correct formula is thecurrent price divided by the base year's price, multiplied by 100. This standardization allows analysts and managers to easily interpret changes relative to a reference point. An index value of 100 indicates no change from the base year, values above 100 indicate an increase, and values below 100 indicate a decrease.
This approach is widely used in economic analysis, inflation tracking, and business trend evaluation because it simplifies comparisons across time. Dividing the base year by the current price would reverse interpretation, and omitting multiplication by 100 would fail to express the index in percentage terms.
Therefore, optionAcorrectly represents the formula for calculating a simple index number.

NEW QUESTION # 21
Why would a human resources department use both mean and median when doing a salary evaluation of a department?

A. A large difference between mean and median shows an abnormal standard deviation.
B. A large difference between mean and median shows there are outliers to assess.
C. A large difference between mean and median shows that some employees need raises.
D. A large difference between mean and median shows a miscalculation in the analysis.

Answer: B

Explanation:
Using both mean and median helps identifyoutliers, such as very high executive salaries that skew the average. A large difference between the two indicates uneven distribution.
Thus, the correct answer isC.

NEW QUESTION # 22
A county government must increase trust among voters that their tallying machines are accurately calibrated to count their votes. Each department is tasked with creating an online marketing campaign; however, the budget for these campaigns is limited.
How can the county apply data analytic approaches to allocate funds to each department?

A. By measuring the number of voter complaints per department
B. By benchmarking the voter turnout rates in each county
C. By surveying employees on polling strategies
D. By surveying the county controllers

Answer: A

Explanation:
Allocating limited resources effectively requires identifying where needs and risks are greatest. In data-driven decision making,measuring voter complaints per departmentprovides a direct, objective indicator of trust issues and communication gaps.
Departments with higher complaint volumes may require greater outreach to restore voter confidence. Using this metric allows funds to be allocated where they will have the greatest impact. Benchmarking turnout rates does not isolate departmental needs, and surveys of controllers or employees introduce subjectivity rather than evidence-based prioritization.
Therefore, the correct answer isA.

NEW QUESTION # 23
What is the basic difference between evaluating costs and benefits in the public and private sectors?

A. Private projects generate considerable revenue.
B. The benefit of private projects is general public welfare.
C. The costs associated with public projects are minimal.
D. The benefits of public projects are easily quantifiable.

Answer: A

Explanation:
The fundamental difference between cost-benefit evaluation in the public and private sectors lies inhow benefits are defined and measured. In data-driven decision making, private-sector projects primarily focus onrevenue generation and profitability, making optionCthe correct distinction.
Private organizations evaluate benefits using measurable financial outcomes such as revenue, profit margins, and return on investment. These metrics provide clear, quantifiable indicators of success. In contrast, public- sector projects often aim to maximizegeneral public welfare, including social, environmental, and economic benefits that are more difficult to quantify monetarily.
Public-sector benefits may include improved public health, safety, education, or trust in government- outcomes that do not translate directly into revenue. Therefore, while costs are measurable in both sectors, benefits differ substantially in nature.
Options A and B are incorrect because public-sector costs are not minimal and public benefits are often difficult to quantify. Option D incorrectly assigns public welfare to private projects. Thus, the correct answer isC.

NEW QUESTION # 24
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